In a recent episode of The ESG Report podcast, Trysha Daskam, Head of ESG Strategy at Silver, sat down with host, Tom Fox, to discuss the rise of ESG investing and the ways in which fund managers can implement effective ESG strategies in today’s increasingly stringent regulatory environment.
Some of the key themes covered during the conversation include:
- The ways in which fund managers can implement effective ESG strategies in 2023. This includes: encouraging managers to look at and test their ESG program in order to ensure that every line is defensible; the need to substantiate everything that is stated in an ESG program and to have there be consistent messaging throughout the program; and the ability to show practice that supports the ESG program and documentation for how these ESG factors make their way into investment evaluations, among other factors.
- The need to update ESG programs given the evolution of the regulatory standards, the different questions being asked by investors today versus in previous years and the shifting industry priorities around ESG investment practices.
- The importance of having a defensible and consistent ESG program in order to attract investments from institutional investors.
- The increase in SEC enforcement actions by the SEC and the ways in which fund managers can protect themselves against scrutiny by regulators (tip: document often and do everything that you say you are doing).
- Pertinent updates on the standardization of ESG reporting frameworks across the industry and the consequences of inaccurate reporting across different fund types.
- The growing trend towards increased allocation of assets to ESG strategies now and into the future along with the in-step progress and proliferation of regulation around sustainability and responsible investment strategies globally.
For additional insight on how to effectively update your firm’s ESG program, please feel free to contact a member of Silver’s ESG team (we have also published this helpful guide on the topic).
