Ogier launches ESG Align – a new compliance tool to get fund managers climate ready

Ogier Global is launching a new online product, ESG Align, designed to help asset managers get up to speed with environmental, social and governance (ESG) themes, terminology and regulatory requirements.

ESG Align launches just as the Securities and Futures Commission (SFC) released its consultation conclusions on the management and disclosure of climate-related risks by fund managers on 20 August 2021.

ESG Align is designed to elevate managers' understanding of climate-related risk in portfolio management, and provide a useful compliance check against the new SFC requirements.

The product, which was created by the Sustainable Investment Consulting team, has been devised in response to increased client demand for ESG expertise among asset managers.

"Climate change is an existential challenge for our industry, our economy and society. Managing climate risk has become a critical aspect for many investment managers. ESG Align has been designed to help asset managers improve their understanding of climate-risk, interpret Hong Kong SFC Fund Manager Code of Conduct (FMCC) climate-related regulations and take the necessary actions to get ESG ready," explained Leonie Kelly, Director - Head of Ogier Global's Sustainable Investment Consulting.

"Climate change has become a key area of strategic concern for many asset managers. Regardless of whether investors tilt towards environmental or social objectives, the impact of climate change cannot be ignored. Addressing climate change, alongside other ESG issues, will only become more dominant in the market. This has become evident with increased ESG regulation."

ESG Align is launching with a flexible, web-based training and assessment module, Understanding Risk. Available from September, this 60-minute training course is aimed at asset managers across jurisdictions and will provide guidance on how managers can integrate climate metrics into their risk management processes and give real life examples of ESG strategy integration.

The tool Compliance Check, available for demo from Q4 2021, will help SFC licensed fund managers get a better understanding of gaps in their current disclosure and risk management approach by creating a tailored report and action plans.

"I believe it is critical for managers to be ahead of growing client and regulatory developments. We developed ESG Align with this challenge in mind – we wanted to support asset managers navigate the increasing complex regulatory environment. ESG Align helps managers assess their compliance requirements and set out actions to manage this. ESG Align empowers managers with the knowledge surrounding climate-related risk and importantly provides practical portfolio case examples of climate-risk investment management across investment strategies," said Leonie, who has more than 12 years of experience working at the forefront of sustainable finance.

"We believe education is key, and we want to support asset managers with the knowledge and tools to act on climate risk."

Ogier Global’s Sustainable Investment Consulting is a pioneering, purpose-driven advisory practice that helps clients embed ESG and impact goals into their long-term strategic thinking. It works across the spectrum of asset classes, helping asset owners, asset managers, banks, corporates, investment funds, institutional investors, private wealth, family offices and foundations to transform sustainability challenges into opportunities.

To find out more about ESG Align, read our brochure Sustainable Investment Consulting ESG Align factsheet, email esg.align@ogier.com, or get in touch with one of the team.