In 2022, ET.Group developed the scientific project ESG.IAMA (ESG Identity Asset Manager Assessment). The first quantitative index that set out to measure the Asset Managers’ ESG Identity, which includes the set of distinctive elements of an entity, starting from its organizational structure (governance) to the ESG consistency and coherence of its products to the market, going through the ways in which the entity thinks (its ESG corporate culture) and engages on the sustainable front (its ESG purpose).
Methodology
The methodology used to develop ESG.IAMA derives from the experience gained through:
- Eight years of experience with the Integrated Governance Index (IGI), an ET.Group quantitative index structured as a questionnaire that analyses the evolution of practices, processes and the governance culture of companies operating in the Italian market in order to consider all of the ESG factors, beside economic factors
- Six years of experience with the SRI Awards, which are handed to asset managers on a quantitative basis by applying an assessment matrix, developed by ET.Group, structured around three macro-areas: ESG ratings; the risk and return performances; the asset manager’s governance
- Norms and other questionnaires analyzed, such as: Bankitalia thematic investigation; ESAs ESG guidelines and consultations; EU SFDR Regulation; EU Shareholder Rights Directive II; EU Taxonomy Regulation; EU Whistleblowing Directive; FCA SDR and investment labels consultation paper; ICGN GISD Alliance Model Mandate; IOSCO Good Sustainable Finance Practices; UNPRI Due Diligence questionnaire
- Best cases analyzed
What does it mean to accept the challenge of ESG.IAMA?
1. SUSTAINABILITY AS A PRIORITY
It means investing in a dialogue/confrontation on the topic of ESG factors, under the banner of stakeholder engagement and interaction, key aspects of sustainability. The questionnaire submitted to the Asset Managers is a challenge of understanding and induction on ESG frontiers.
2. ORGANIZATIONAL CULTURE AND ESG PURPOSE
It means deeming it important to improve and compare one’s organizational culture, which is considered an enabling factor of long-term sustainable identity. And demonstrating having a higher purpose, an ESG Purpose, prerequisite to be always on the frontier of sustainability.
3. COHERENCE BETWEEN ITS PRODUCTS AND THE ASSET MANAGER
It means making sustainability an integral and determining part of one’s business and governance. Which translates into “being sustainable” before even “selling sustainable products”.
Why to do it?
- For the system, from the Asset Managers community to investors, because trend analysis allows for the development of dialogue, discussion, and the identification of trends and best practices.
- For the Asset Managers, because it allows them to have a tool to: 1. Implement awareness; 2. Develop internal alignment and comparison between functions; 3. Benchmark against other Asset Managers; 4. Develop benchmarking with themselves.
Today, the ESG.IAMA project has taken on the connotations of an indicator of the Asset Manager’s ESG Identity.
Therefore, it can also represent great value in terms of recognition for the Asset Managers.
That is why the ESG.IAMA label was also created: it is an award for courage, commitment and the belief to be on the frontier of sustainability.
ESG.IAMA label 2022, participants and Top 5
