Environmental, Social and Governance (ESG) funds are increasingly popular, but how do we know that the underlying assets live up to the name? How do we know that fund managers are systematic in appraising these assets and projects.
Combining years of consulting experience with the latest academic thinking, we have developed a methodology that examines ESG claims before validating them. Reputable’s three-fold verification process results from a logical process of decomposition where we offer verification services confirming the systems in place, offer the client a comparative measure of how sophisticated its procedures are and provide a “direction of travel” statement. Our tailored advisory services are vital to the success of the verification as we support our client along the process, to achieve excellence in their systematic approach and maximise their impact value.
We are currently operating to assess the client’s alignment with the operating principles for impact management established by the International Finance Corporation's framework. This is a scalable and relevant baseline approach to ensure that impact considerations are integrated throughout the investment cycle for all asset types, sectors, geographies and investment portfolios.
Based on leading ESG frameworks, our verification methodology confirms adherence to the fundamentals. In recognition that ESG practices are evolving, we then note in our reports areas of advanced practice. Rather than ticking boxes, our objective is to set the standard for ESG framework validation.