Sponsor
Chief Operating Officer and Head of Governance & Responsible Investing
Functions
Cross-functional
Client Type
Global Asset Manager
Client Challenges
- A global asset manager with long term ambitions to lead in the ESG space, but with immediate concerns in meeting regulatory standards, wanted to meet these obligations in a non-tactical way, to leverage the work in support of their long term vision
- Due to the multitude of regulations emerging in the ESG space, as well as the complexity and short implementation deadlines associated with some of these regulations, Alpha was engaged to assess the regulatory landscape for ESG and to produce a roadmap of upcoming regulatory change
Alpha Approach
- We leveraged Alpha’s internal research of the ESG Regulatory Landscape (at a global, EU and UK level), comparing it to the client’s business, to identify the scope of key incoming regulations relating to ESG relevant to the client
- We produced a thematic summary of these incoming regulations to pinpoint key suggested areas of focus across the asset manager’s business, such as disclosures, classification tools and active ownership
- We conducted a deep dive assessment of key incoming regulations / voluntary codes, including SFDR, the EU Taxonomy and the UK Stewardship Code 2020, both with respect to their internal, and their clients’ obligations
- Alpha assessed each regulation’s scope, as well as key operating model changes which would be required to reach compliance
- We produced a consolidated Regulatory Roadmap detailing key dates across the incoming regulations
Client Benefits
- The client was provided with a robust, clear view across the multitude of incoming regulations in the ESG space, with a central record of requirements linked to regulatory deadlines
- The client was provided with clear insight into the potential practical implications of complex regulations for their operating model, providing a platform for focused, detailed impact assessments and implementation programmes to commence
About the Author
Sarah Hedges
Consultant, ESG SME
Sarah is an experienced consultant, specialising in ESG and RI regulations. Since joining Alpha in September 2017, Sarah has supported a variety of asset managers in understanding the ESG regulatory landscape, as well as assessing incoming requirements and associated implementation considerations. Sarah also has experience across the broader EU and UK regulatory agenda.