ESG monitoring icon In a time where sustainability and environmental protection are becoming increasingly important to institutional investors, all actors of the financial sector are concerned. With regard to the fund industry, not only the established specialised investment managers, but also more and more mainstream asset managers are under pressure to integrate ESG-criteria into their investment process. With regards to Banks and Private wealth management, the integration of sustainability risk and the appetite of a new generation of investors for products that meet some sustainability standards oblige to revisit the whole value chain.

The global health crisis and the materialisation of non-financial risks all over the globe shed some new light on the importance of environmental, social and governance (ESG)_ and sustainability matters.

The experts of Arendt’s ESG group, combining legal, regulatory, tax and advisory experts, provide you a complete support concerning your different ESG needs.

 

Our ESG services

  1. Education

  2. ESG Strategy Advice

  3. Documenting

  4. Implementing & Monitoring

  5. Communication & Reporting

 

1. Education

Arendt assists its clients in understanding what is at stake when discussing ESG and sustainable finance.

Arendt’s specialised legal training business - Arendt Institute_ - proposes high-level and practical courses in all business areas to a large target audience including top executives, managers and officers.

Arendt also provides Board with regular regulatory update and engage on the future strategy in relation with ESG considerations.

2. ESG Strategy Advice

Arendt helps its clients to develop their own customized ESG strategy that fits their organizations and their goals:

  • Understand where they are as an organization with respect to ESG integration and helping them to define where they want to go depending on their business needs or regulatory constraints
  • Support on defining the operational/organizational strategy (e.g. Corporate ESG Approach/marketing sanity check/identification of redflags)
  • Redefine their product strategy through gap analysis against regulatory framework, product categorization or taxonomy alignment exercise in light of fast evolving regulatory framework
  • Identify preferential tax treatment
  • Review of business plan in the light of ESG
  • Identify investment restriction/eligibility against ESG criteria
  • Guide on international standards
  • Assist with the setting up of Impact strategies

 

3. Documenting

Within Arendt, we have been assisting our clients for years with their legal documentation and we are now bringing that expertise to the required changes prompted by the ESG context. We review and update the following:

  • Funds documentation (PPM, contracts) to integrate ESG disclosures
  • ESG policy/charter
  • Investment process/policy to integrate ESG considerations
  • Risk management framework to integrate sustainability risks
  • Materiality assessment
  • Standard ESG due diligence questionnaires
  • Engagement/voting rights policy

 

4. Implementing & Monitoring

Arendt has developed expertise in regulatory and advisory services, which have been put at the disposal of its clients to implement compliance/monitoring and internal procedures such as:

  • Establishing of the right governance and incentives and internal processes
  • Establishing of ESG funds distribution related services
  • Establishing of UNPRI Reporting/use of ESG ratings/relevant KPIs selection (Matrix, limits, etc.)
  • Monitoring of the ESG eligibility criteria chosen (ESG investment restrictions monitoring)
  • Portfolio screening/measures of performance against goals
  • Assessing of taxonomy eligibility and taxonomy alignment
  • Establishing of ESG tools/Due diligence

 

Arendt also helps its clients to implement their ESG Risk Monitoring:

  • Updating of risk management policies and risk profiles
  • Establishing of KPI
  • Identifying of material risks
  • Risk assessing of corporate sustainability
  • Analysing stranded asset

 

5. Communication & Reporting

Arendt helps its clients show what they do well by enhancing their communication towards investors and other stakeholders on ESG matters. The Arendt proposal includes the:

  • Internal reporting
  • Fund reporting (LPs, GPs and investors communications)
  • Annual reporting (integration of ESG-linked KPIs)
  • Non-financial reporting
  • ESG marketing/communication
  • Taxonomy alignment calculation

 

Meet our ESG experts

Contact our dedicated team: sustainability@arendt.com

Related key words/definitions

Please click here_ to discover our ESG glossary

Specific documentation

Arendt ESG Tool Box for Asset Managers_

 


[NEW] ESG in the banking and insurance sectors - Key milestones - Timeline

The ESG framework for the banking and insurance sectors is vast and complex, with many intertwining legal texts and obligations that vary in scope and compliance deadline. To meet this challenge and stay ahead of the game, you should know about key ESG milestones – and contact our experts if you need assistance! Download the timeline here_

2022.07.14 - ADVERT banner - timeline ESG banking  - website - w850

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