The US Forum for Sustainable and Responsible Investment (USSIF) has released a best practice guide for asset managers and discretionary fund managers on incorporating ESG principles into investment strategies.
The guide covers establishing board and senior level oversight, identifying sources of ESG data, research and training, developing and implementing ESG strategies, developing investor engagement, and recommended approaches for measuring impact investments.
Lisa Woll, chief executive officer of the US SIF Foundation, said the guide has been put together in response to increasing demand from investment managers.
“As the field expands, we consistently hear that asset managers need basic information about how to get started in creating ESG-focused products and strategies,” Woll said in a statement.
“We also believe that asset managers need to continually build out their offerings and provide transparency about their investing process. The Money Manager Roadmap is a tool that asset managers can use whether they are just starting out or are experienced practitioners moving toward a more rigorous practice.”
It has been put together with guidance from portfolio managers at companies subscribed to the US trade group and is designed to assist investment firms seeking to improve their processes on environmental, social or governance metrics.
Styled as a roadmap, the guide has pointers for firms that are already at an advanced stage in using ESG metrics to build portfolios as well as those just starting out.
Paul Hilton, a partner and portfolio manager at Trillium Asset Management, explained that investment managers can no longer simply give lip-service to sustainable investing.
He added: “[The] roadmap provides a concrete path for managers who are looking to credibly and meaningfully mobilize capital towards impact.
“For many of us in the field, we believe our collaborative work to grow the field is the most important step we can take to demonstrate leadership and create lasting change.”