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As environmental, social and governance (ESG) principles increasingly become a key business consideration, regulators have started discussing effective standards to ensure proper data management and reporting. For asset managers, who have a long history of integrating ESG into their offerings, the demand for more sophisticated global standards and reporting offers opportunities to unlock value for investors and generate profitable growth. The question: How can they take proactive steps to integrate ESG into their overall investment strategy and prove the value it creates?

ESG as an asset

Asset managers need to organize themselves to instill trust in their data: trust is the foundation of thriving capital markets. By building strong relationships, you build trust with stakeholders, and by ensuring it, you build that trust. »- Elizabeth Ming, Partner, KPMG IMPACT Audit – Asset Management

In ESG as an asset: preparing your portfolio for the ESG future, James Catalano, and Liz Ming outline the steps organizations need to take to determine what ESG data is critical and invest in its integrity. They understand:

Prepare for the new standards now by reviewing the definitions of ESG data: As standards become more concrete, companies will need to understand their current data definitions and measurement processes, in anticipation that additional changes and transparency will be required by new regulations and / or standards.

Protect the integrity of this data: While reporting to the market is not yet mandatory, if data is presented to investors and investors use it to make decisions, asset managers need to be confident in the reliability of the data.

Understand insurance options: With a focus on data integrity, insurance becomes more and more attractive. Investors can make more informed decisions with more rigor and precision in the data, and assurance can increase confidence before possible disclosures required by the SEC.

Set yourself up to instill trust in your data: Trust is the foundation of successful capital markets. By establishing rigorous relationships, you generate trust with stakeholders, and by ensuring it, build that trust.

Pioneers will set the bar for data measurement, demonstrating with credible data why certain variables are not only critical for the business, but also impacting the environment, society and governance.

Elisabeth ming

Auditor Partner | IMPACT KPMG

Jacques Catalano

Auditor Partner