Private Wealth Management Firms: 7 Steps for Successful ESG Programs

Editorial featured on the Impact Wealth web site, August 31, 2023.

About the Author: Danielle Pepin is the Head of Product for Portfolio Monitoring and Valuation at Dynamo Software, where she oversees Dynamo’s development of user-focused, value-driven portfolio monitoring products for the alternative asset industry. Connect with Danielle on LinkedIn.

New research indicates interest in ESG investing Program and Impact funds is holding steady, but it’s paired with hesitation to trust ESG labelling.

In a 2022 Bloomberg article, investor advocacy group As You Sow reported that 60 of 94 ESG funds failed to adhere to ESG investing Program principles. Earlier this year, MSCI planned to downgrade or strip hundreds of ETFs of their ESG ratings.

What’s more, the persistent caution around greenwashing is now joined by another phenomenon – greenhushing – where ESG claims are removed or minimized to avoid the regulatory scrutiny or political backlash those claims can generate.

Regardless of the challenges in validating data, this sector is vibrant, drawing capital and talent from other approaches to wealth creation. UBS reports that family offices allocate more than 20% to ESG investing and project this to hold steady for the next five years. Impact investing is set to grow to 11% allocation.

For funds and companies who have an established ESG strategy, skepticism is welcome. It provides an opportunity for differentiation – but only if a family office is able to consume and track the ESG data now becoming available.


Read the rest of the article at Impact Wealth here.