INVESTORS
Managing the evolving relationship between ESG considerations and investment decision-making, product classification and distribution
BUSINESSES
Managing your ESG risk exposure and harnessing opportunities
LENDERS
Financing ESG-related investments
INVESTORS
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There has been a material shift in investor appetite for ESG-aligned investing in recent years, with asset owners and asset managers increasingly committing to global initiatives such as the UNPRI and the UN SDGs, alongside a visible shift in retail demand for sustainable investment. These developments present an opportunity for asset owners and asset managers to adopt a clearly defined position on ESG and the role it plays in their investment decision-making processes.
The evolving relationship between ESG considerations and investment decision-making, product classification and distribution is significantly affecting the funds and asset management industry. Asset owners and asset managers are increasingly being required to consider the ESG dimensions of any proposed transaction or investment decision, to ensure that sustainability risks are adequately considered and that consistency with the ESG preferences of their underlying clients or beneficiaries is ensured. The considerations of ESG issues has, therefore, changed from a ‘compliance’ exercise to a core ‘business’ consideration for asset owners and asset managers.
We have considerable experience assisting asset owners and asset managers to respond to the impact of these developments across their businesses, from advising on strategic and operational considerations at an organisational level to helping them launch or invest in ESG-related strategies.
BUSINESSES
3. ASSESS YOUR OPTIONS
LENDERS
3. ASSESS YOUR OPTIONS
The increasing focus on corporate purpose, accountability and operational resilience has continued to drive environmental, social and governance (ESG) matters up the corporate agenda.
While such issues may have historically been viewed as dilutive to financial value, there is a growing acknowledgement that sustainable business practices are not only essential from a risk management perspective, they are also often accretive.
Risk exposure differs from business to business, but common risks include issues relating to: climate change, anti-bribery and corruption and other forms of corporate crime, underpayments and ‘wage theft’ allegations, human rights and modern slavery in supply chains, sexual harassment and bullying allegations, workplace culture, tax avoidance and more.
We help businesses understand and implement processes to better manage ESG risk exposure and make the most of opportunities, by bringing together deep subject-matter expertise and best-in-class market knowledge across the ESG landscape, including in relation to governance, human rights, climate and communities.
Across the market, the role of lenders in shaping corporate behaviour is well-recognised, with sustainability- and ESG-linked lending continuing to grow year on year. In 2019, the total cumulative issuance of sustainable debt was measured at US$1.17 trillion; sustainability-linked loans (loan facilities with ESG performance linked pricing) totalled US$122 billion, an increase of 168% since the previous year; and green bond issuances totalled US$271 billion.
Increasingly, regulators and trade bodies are also focusing on the role of finance in driving better environmental and social outcomes, both with formal reporting and disclosure frameworks and voluntary standards such as the Green Loan Principles and the Sustainability-Linked Loan Principles, published jointly by the LMA, the APLMA and the LSTA but also growing investor activism in relation to ESG-related financial risk areas.
We work with both lenders and borrowers to optimise loan documentation and reflect the important role ESG factors can play in lowering credit risk and delivering improved environmental and social outcomes for all stakeholders.
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ANTI-BRIBERY AND CORRUPTION
ANTI-MONEY LAUNDERING
business and human rights
climate change
CORPORATE governance
CYBER AND DATA SECURITY
CORPORATE CRIME AND INVESTIGATIONS
Crisis prevention and management
data protection and privacy
Environment, Planning and Communities
governance and risk management
HEALTH, SAFETY AND ENVIRONMENTAL CRISIS MANAGEMENT
impact investment
private wealth and charities
Sustainable and Green Finance
WORKPLACE HEALTH AND SAFETY
ANTI-BRIBERY AND CORRUPTION
ANTI-MONEY LAUNDERING
business and human rights
climate change
CYBER AND DATA SECURITY
CORPORATE governance
CORPORATE CRIME AND INVESTIGATIONS
Crisis prevention and management
data protection and privacy
Environment, Planning and Communities
governance and risk management
HEALTH, SAFETY AND ENVIRONMENTAL CRISIS MANAGEMENT
impact investment
private wealth and charities
Sustainable and Green Finance
WORKPLACE HEALTH AND SAFETY
ANTI-BRIBERY AND CORRUPTION
ANTI-MONEY LAUNDERING
business and human rights
climate change
CORPORATE governance
CYBER AND DATA SECURITY
CORPORATE CRIME AND INVESTIGATIONS
Crisis prevention and management
data protection and privacy
Environment, Planning and Communities
governance and risk management
HEALTH, SAFETY AND ENVIRONMENTAL CRISIS MANAGEMENT
impact investment
private wealth and charities
Sustainable and Green Finance
WORKPLACE HEALTH AND SAFETY
ANTI-BRIBERY AND CORRUPTION
ANTI-MONEY LAUNDERING
business and human rights
climate change
CYBER AND DATA SECURITY
CORPORATE governance
CORPORATE CRIME AND INVESTIGATIONS
Crisis prevention and management
data protection and privacy
Environment, Planning and Communities
governance and risk management
HEALTH, SAFETY AND ENVIRONMENTAL CRISIS MANAGEMENT
impact investment
private wealth and charities
Sustainable and Green Finance
WORKPLACE HEALTH AND SAFETY
ANTI-BRIBERY AND CORRUPTION
ANTI-MONEY LAUNDERING
business and human rights
climate change
CORPORATE governance
CYBER AND DATA SECURITY
CORPORATE CRIME AND INVESTIGATIONS
Crisis prevention and management
data protection and privacy
Environment, Planning and Communities
governance and risk management
HEALTH, SAFETY AND ENVIRONMENTAL CRISIS MANAGEMENT
impact investment
private wealth and charities
Sustainable and Green Finance
WORKPLACE HEALTH AND SAFETY
ANTI-BRIBERY AND CORRUPTION
ANTI-MONEY LAUNDERING
business and human rights
climate change
CYBER AND DATA SECURITY
CORPORATE governance
CORPORATE CRIME AND INVESTIGATIONS
Crisis prevention and management
data protection and privacy
Environment, Planning and Communities
governance and risk management
HEALTH, SAFETY AND ENVIRONMENTAL CRISIS MANAGEMENT
impact investment
private wealth and charities
Sustainable and Green Finance
WORKPLACE HEALTH AND SAFETY