The Impact of ESG on Asset Management Research and Analysis
As investors increasingly focus on sustainable products, asset management companies are incorporating sustainability factors into their investment processes. The asset management research and analysis position needs to consider the sustainable development characteristics of specific industries and companies to ensure consistency between investment products and the company’s sustainable investment strategy.
The asset management research and analysis position requires close attention to the financial market and sustainable events that may affect the industry and the company. They need to use substantive sustainability indicators to measure risks and opportunities, and explain in their reports how these indicators promote investment decision-making activities. This position also requires collaboration with management to develop practical sustainable investment policies at the company level.
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How to Apply ESG in Asset Management Research and Analysis
Asset Management Research and Analysis position may apply ESG in the following tasks:
| Key Points | Tasks |
| Conduct research, gather report findings and recommendations | 1. Conduct research on sustainable development factors, such as the impact of sustainable development agendas, corporate governance, transformation risks on commodity prices, and weather events on business locations, which will affect investment performance 2. Include sustainable development performance and risk indicators in the report |
| Provide strategic inputs for policy formation | 1. Understand sustainable development and regulatory policy requirements within the industry, as well as sustainable events that affect specific industries 2. Provide material sustainability issues to management and incorporate these issues into the portfolio construction process |
| Facilitate investment processes | 1. Collaborate with other business departments to complete investment valuation and incorporate sustainability risks affecting investment targets into the valuation process 2. Integrate sustainable factors into investment decision-making and engagement |
Asset Management Research and Analysis position will need to apply climate change management, nature capital management, sustainability management and taxonomy application skills.
Reference:
Monetary Authority of Singapore
Institute of Banking and Finance Singapore
