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Perspectives

ESG challenges and opportunities

Regulatory strategies for investment managers

As investment managers see a shift in investor interest in ESG products and services, they are simultaneously facing an unprecedented amount of external regulatory pressure. Learn how your team can create strategies and practices to address the extensive oversight, disclosure, and reporting requirements of this evolving regulatory environment.

Meeting an uncertain regulatory landscape

As the industry experiences a surge in demand for environmental, social, and governance (ESG) investments, this growth has been accompanied by an unprecedented level of regulatory pressure. The complexity only grows as changes in government policies and enforcement shift. Therefore, it’s crucial for leaders in ESG investment management to adequately prepare and put systems in place that can readily adapt to the regulatory and compliance risks that may arise.

Data: a focus area for ESG investment managers

To meet ESG compliance, investment managers are increasingly challenged with the sourcing of reliable third-party ESG data. It not only has to be accessed, but verified. While investment managers are accustomed to using service provider data (such as MSCI and Bloomberg) to inform investment decisions, ESG presents a unique challenge in not only evaluating the sheer number of data providers, but their quality. To meet this, we outline considerations investment managers can take to select a data provider that aligns with their ESG investment philosophy, strategy, and data requirements.

Streamline your ESG regulatory compliance

In 2023, investment managers expect to face increasing pressure to adapt to turbulent market conditions and evolving regulatory expectations. Firms that fail to engage in thoughtful discussions about their current ESG compliance and how they integrate ESG considerations into their risk management frameworks may face punitive consequences.

But taking proactive steps is about more than about enforcement avoidance. Integrating intelligent ESG regulatory considerations into your operations provides transparency which can lead to positive financial performance. ESG disclosure requirements are likely to increase, making data quality even more of an imperative.

Want to know more? Let’s connect.

Strategies for sustainable ESG investment practices

Get in touch

Karl Ehrsam
Principal
Deloitte & Touche LLP
kehrsam@deloitte.com
+1 917 880 7538

Ricardo Martinez
Principal
Deloitte &Touche LLP
rimartinez@deloitte.com
+1 646 373 7084

Suzanne Smetana
Managing Director
Deloitte &Touche LLP
ssmetana@deloitte.com
+1 617 960 5452

Joe Tedesco
Senior Manager
Deloitte & Touche LLP
jtedesco@deloitte.com
+1 303 669 1407

Sarah Digirolamo
Senior Manager
Deloitte &Touche LLP
sdigirolamo@deloitte.com
+1 857 327 0404

Meghan Burns
Manager
Deloitte Services LP
megburns@deloitte.com
+1 917 880 7538

Kate Deines
Manager
Deloitte & Touche LLP
kdeines@deloitte.com
+1 206 716 6930

Jared Friedman
Manager
Deloitte &Touche LLP
jarfriedman@deloitte.com
+1 908 309 4271

Taariq Phillips
Senior Consultant
Deloitte &Touche LLP
taaphillips@deloitte.com
+1 908 420 4731

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