ABI HELPED EUROPEAN ASSET MANAGEMENT FIRM TO DEVELOP ESG SCREENING FRAMEWORK
An asset management firm in Europe wanted to develop its own ESG rating framework to include in its investment decision making process.
SCOPE OF WORK
The client needed a ready to deploy team with deep expertise in ESG research to help in developing the new framework. The specific scope of the work included:
- Identification of ESG parameters
- Assigning weights to various parameters
- Assigning ratings to various companies
- Generating combined ESG score
- Identifying best performing and least performing companies
- ABI deployed an experienced team comprising associates with robust experience in ESG Consulting
- ABI created a framework for ESG Compliance Evaluation – comprising 440 parameters across 14 sub-components of Environmental (4), Social (5) and Governance (5) themes – with defined weights and scoring guidelines. The framework also included arriving at combined score to make the ESG compliance comparable across sectors and geographies.
- ABI defined the whole process of Data Collection, Data Processing, Validation & Audit, Scoring, Negative Listing and arriving at Combined Score.
- The team developed comprehensive model and back tested the model for past several years to decide the robustness
- ABI team carried out extensive search and aggregation exercise of ESG parameters of different companies in Europe
- ABI deployed local language experts for evaluating companies in Japan, China and other parts of the world
- The designed system Identified companies that scored above or below average on ESG ratings
- ABI team included 30+ ESG Analytics and Dashboards leveraging its Data Analytics team
- The client created a proprietary ESG evaluation system in short span of time and in cost efficient manner
- Focus on data-security and well-defined access structure on the “need-to-know” basis keeps the data and information security as the same level as is found in the internal team