Environmental, Social, Governance (“ESG”) investing is a rapidly growing area of focus for investors. Investors are especially wary of “greenwashing”, when an asset manager exaggerates the extent of ESG integration in their investment strategy.
Manager supplied ESG data is a great start, but self-reported, unverified information should clearly be subject to due diligence. Does the asset manager actually do what they say they do? Are investment manager policies comprehensive - or is the manager's ESG policy simply a "tick the box" statement? Is the investment firm leading - or lagging - its peer group in terms of ESG behaviours?
Leveraging our decade plus experience of operational due diligence, Castle Hall's ESG due diligence services offer investors new insights into their external managers.
ESGDiligence has two components: