For our client, an internationally active capital management company, we created an individual ESG reporting system taking into account its individual needs and requirements and realized it from design to implementation and automation. The project focused on cost optimization and the visibility of ESG at portfolio and client level. The introduction of ESG reporting has enabled our client to play a pioneering role in the capital market. By offering sustainable investments to the end customer, promising target groups can be developed in the future and, thanks to the automation of reporting, costs can also be saved.
The term ESG investment is often used in the context of sustainable investment, socially responsible investment or screening and describes non-financial factors that are considered in the investment decision-making process. Environmental, social and governmental influences such as diversity or the carbon footprint can be included.
Current demographic developments are leading to a phase of asset redistribution. Especially women, millennials of the so-called Generation Y and wealthy private individuals are gaining in importance as investor groups, but at the same time are displaying a completely new decision-making and investment behavior than has been the case in the past. Instead of only paying attention to financial factors, sustainability criteria play an important role for these groups in the analysis and composition of their portfolios.
After selecting suitable ESG rating factors, the scope of data and matching the data to the holdings, an ESG data aggregation was performed to calculate an ESG rating. Based on these ratings, a specially developed tool for the automated generation of ESG reports was used. The ESG reports can then be forwarded to the investor. Since different factors play a role for each investor, the tool was set up in such a way that it can be easily adapted to the customer's individual needs.
EXXETA's Servides at a Glance:
- Design and implementation of an ESG reporting process
- Support in developing the methodology for ESG data aggregation ( method, thresholds, weighting)
- Development of a tool for the automatic generation of ESG reports (combinations of negative screening, threshold and holistic view, overall rating distribution and information screening, and carbon footprint)
- Development of customer-specific reports and automated report generation
- ESG reporting consulting of CRM, PM and investment specialists in the acquisition and participation in the "ESG-Reg-Change" strategy project
By setting up ESG reporting, you will be able to address new target groups and align yourself with the upcoming market standard created by the EU taxonomy and its regulatory requirements.
Due to the great flexibility of our solutions, we offer you a high degree of adaptability and expandability with regard to other ESG factors and the specific requirements of your customers.
The automation of the process also enables cost-optimized reporting and the integration of customer and portfolio-specific exposure thresholds.