Sustainability Services for Investors and Asset Managers

Sustainability Services for Investors and Asset Managers

For investors and asset managers, sustainability is no longer only a question of values, preferences or marketing. It is increasingly a question of fiduciary duty, ESG risk integration and robust investment processes.

As the market develops a stronger understanding of why ESG risks must be integrated into investment decisions, many asset managers will need to review how sustainability, ESG research and engagement are embedded in their investment processes.

Client due diligence on ESG integration and sustainable investment processes is also becoming more demanding. Institutional clients, fund selectors and distributors increasingly expect asset managers to explain how ESG risks are identified, assessed, documented and integrated into investment decisions.

Asset managers should be prepared.

ESG and Sustainability Support for Asset Managers

sustainAX assists investors and asset managers with ESG risk integration, sustainable investing processes, engagement, ESG research coverage, sustainability communication, regulatory guidance and SRI fund labelling.

Our services are designed for asset managers that need practical, investment-relevant support rather than generic sustainability advice.

Sustainable and Responsible Investing

SRI stands for Sustainable and Responsible Investing.

We recommend that asset managers consider sustainable and responsible investing principles across all actively managed strategies. Many asset managers are also increasingly applying sustainability-related criteria to passive strategies.

Strictly speaking, asset managers may not always be legally required to apply a full sustainable and responsible investment strategy. However, not having a credible approach to sustainability and responsible investing is increasingly becoming a competitive disadvantage.

For mainstream institutional clients, sustainability expectations are moving quickly. What may still be accepted today is unlikely to be sufficient tomorrow.

ESG Risk Integration and Fiduciary Duty

ESG integration is increasingly viewed by specialists as part of an asset manager’s fiduciary duty.

The reason is simple: ESG risks are financial risks when they may affect a company’s revenues, costs, assets, liabilities, financing conditions, reputation or long-term business model.

By integrating ESG risks systematically into investment decisions, asset managers help ensure that financially material sustainability risks are considered alongside traditional financial risks.

ESG Integration Processes

We help asset managers assess and improve how ESG risks are integrated into investment processes.

This work typically includes process mapping, gap analysis and practical advice on how ESG risk assessments can be embedded in portfolio management, credit analysis, equity research, investment committees and decision documentation.

We can also audit existing investment processes to assess whether ESG integration is sufficiently systematic, decision-relevant and documented.

ESG Engagement Processes

Engagement is an important part of responsible investment and ESG risk management.

We help asset managers assess whether they are engaging effectively with portfolio companies on material ESG matters. This can include mapping current engagement practices, identifying gaps, improving escalation processes and strengthening documentation.

We can also support or run ESG engagement processes on behalf of asset managers.

ESG Research Coverage for Nordic Companies

Many smaller Nordic companies, private companies and issuers are not covered by the major global ESG data providers.

This creates a practical challenge for investors and asset managers that need reliable ESG risk research across the full investment universe.

sustainAX has built a library of ESG risk research that can be accessed through a licence. This helps investors and asset managers complete their ESG research coverage where external ESG data is limited, unavailable or insufficiently detailed.

Sustainability Communication for Asset Managers

Clear sustainability communication is increasingly important for asset managers, fund selectors, institutional investors and end clients.

Sustainability covers a broad range of environmental, social and governance factors. However, it is important to distinguish general sustainability communication from the more specific regulatory concept of Sustainable Investmentunder the EU Sustainable Finance Disclosure Regulation, SFDR.

Under SFDR, Sustainable Investment has a specific meaning and must be handled carefully.

We assist asset managers that wish to communicate clearly, accurately and responsibly on sustainability, ESG risk integration and sustainable investment processes.

EU Sustainable Finance Regulation and Reporting

EU sustainable finance regulation continues to develop rapidly.

Asset managers face increasing expectations linked to ESG integration, SFDR disclosures, sustainability-related reporting, fund documentation, due diligence and client communication.

We monitor regulatory developments and can help asset managers understand new requirements, deadlines and supervisory expectations.

This often includes practical support with regulatory reporting and sustainability documentation.

SRI Fund Labelling

There are several SRI and sustainability labels available for investment funds.

Examples include:

• Febelfin

• Nordic Swan Ecolabel

• LuxFLAG ESG Label

These labels often require applications, documentation, eligibility assessments and periodic updates.

We help asset managers assess relevant sustainability labels, prepare applications and manage ongoing update requirements.

Practical ESG Support for Investment Organisations

sustainAX combines ESG risk research, sustainable finance expertise and practical investment-process experience.

We support asset managers that need to strengthen ESG risk integration, improve sustainability processes, complete ESG research coverage, prepare for client due diligence, communicate more clearly on sustainability and respond to regulatory developments in the EU sustainable finance market.