ESG

Sustainability in financial services

Sustainable finance is on the top of the agenda of most financial institutions. The demand for sustainable investing is growing exponentially. Measuring sustainability and implementing it in your decision-making process can be challenging.
A company’s sustainability is typically measured by its ESG (Environmental, Social, and Governance) scores, which can be obtained from various data providers.
Upcoming EU and ECB regulations will require banks to include climate and environment-related risks in their risk management and pension funds to report on their sustainability strategy.
These issues pose significant challenges for financial institutions such as banks, insurers, asset managers, pension funds, and family investment offices.

Why Probability?

P&P has many years of experience with ESG scoring, data analytics, and portfolio management.
P&P is strong in both academic research and practical implementation.
P&P provides a holistic approach to ESG integration, backed by our risk management and quant experience in banking, pension fund, and asset management industries.
P&P bridges the qualitative and quantitative approaches to ESG integration.
We work together with you to provide tailor-made solutions to your sustainability needs.

typical roadmap to esg integration

1.

Define the client’s sustainability goals

2.

ESG data provider selection & onboarding

3.

Measuring ESG goals for your portfolios

4.

Roadmap to improvement & selection

5.

ESG reporting & monitoring

6.

Ongoing evaluation of sustainability goals

Related research

Sustainable factor investing:
ESG considerations in your factor strategies

How to measure and improve portfolio’s contribution to SDG’s

Key elements

P&P has its own sustainability scoring methodology, which is robust, quantitatively driven, and flexible in terms of sustainability goals and data sources.
We help the client to formulate and measure their own sustainability goals.
We apply a variety of approaches to sustainability-driven portfolio construction and scoring; the choice of approach is tailored to the client’s needs.
We are experienced with ESG data from different providers: Refinitiv, Sustainalytics, RepRisk, TruValue, Moody’s.

Past assignments include:

ESG scoring methodology improvement for a major data provider.
Data selection and onboarding for banks and asset managers.

Insights

October 14, 2022

Svetlana Borovkova: Are corporate bonds sensitive to ESG and news sentiment?

Svetlana Borovkova’s column in the Financial Investigator is about the relationships between news sentiment & corporate bond yields, and ESG scores & corporate bond yields.

October 10, 2022