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In this article, Hatim Baheranwala, Co-Founder and CEO of Treety, Ocorian’s ESG reporting partner, delves into the anticipated SFDR changes and offers guidance on how to start preparing for more stringent ESG reporting requirements.

In this article, Hatim Baheranwala, Co-Founder and CEO of Treety, Ocorian’s ESG reporting partner, delves into the anticipated SFDR changes and offers guidance on how to start preparing for more stringent ESG reporting requirements.

Alpha Asset Management M.F.M.C. was a gold sponsor of the “ESG for Banks, Firms and Institutional Investors” Conference, an international event that informs on the latest trends and developments in the fast-evolving ESG field. The Conference was co-organized by the Institute of Finance and Financial Regulation (IFFR) and the European Bank for Reconstruction and Development (EBRD). Speaking at the Panel “Challenges for Sustainable Investors”, Antonios Antoniadis, Senior ESG Investment Specialist at Alpha Asset Management, analysed the performance of ESG funds over the last few years, referred to the importance of integrating sustainability factors into the investment process and to some of the main challenges that asset managers face with ESG integration. #AssetManagement #ESGinvesting #ESG #IFFR

Hatim Baheranwala, Co-Founder of Treety, Ocorian's ESG reporting partner, delves into the anticipated changes to the EU's Sustainable Finance Disclosure Regulation (SFDR) due to be implemented in 2025. Hatim offers guidance on how alternative asset managers can start preparing for potentially more stringent ESG reporting requirements ahead. Read Hatim’s insights here > https://lnkd.in/eGHdGFib #SFDRAmendments #ESGReporting

The Management pillar of the Fund ID assessment will be the most familiar to those working in impact. In the Fund ID pilot program, Management had the highest average score among the four pillars at 67%, indicating that most funds have implemented fundamental IMM practices, and reflects the relatively higher market consensus on what constitutes ‘good’ impact management practice. However, there were some surprises. Less than 10% of managers scored high on several leading-edge practices, indicating there is still room to grow as it relates to advanced IMM. The Management pillar of the Fund ID examines a fund's: ↳ Impact and ESG due diligence processes ↳ Monitoring and management of impact and ESG performance ↳ Impact and ESG exit and review processes Dive into the details and download the paywall-free white paper here: https://lnkd.in/gGx3R5rT

Here's a useful timeline on the changes coming in relation to the use of #ESG or #sustainability related terms in #UCITS and #AIF fund names.

[ESMA Guidelines on funds' names using ESG or sustainability-related terms | August 2024] ->https://lnkd.in/eB2cJ5n8 👇 ESMA has published the translations in all official EU languages of its Guidelines on funds’ names using ESG or sustainability-related terms

🔜Kick off to European Securities and Markets Authority (ESMA)'s Guidelines on funds' names related to ESG and sustainability: 🗓️21 Nov 2024: application date for newly created funds 🗓️21 May 2025: application date for previously existing funds Asset managers will have to decide either to adapt the asset allocation and investment strategies of their #funds to such guidelines, or to change funds' names to avoid #greenwashing. What will they do? Let's recall some of the requirements: 1️⃣🌱Funds with the words "sustainable", "ESG" or "environmental" will have to follow EU Paris-aligned Benchmark (PAB) exclusions. Remember that PAB include, for instance, the exclusion of investment in companies: (a) that derive 1% or more of their revenues from exploration, mining, extraction, distribution or refining of hard coal and lignite; (b) that derive 10% or more of their revenues from the exploration, extraction, distribution or refining of oil fuels; (c) that derive 50% or more of their revenues from the exploration, extraction, manufacturing or distribution of gaseous fuels; or (d) that derive 50% or more of their revenues from electricity generation with a GHG intensity of more than 100g CO2 e/kWh. 2️⃣Funds with the words "social" or "transition" will have to follow the EU Climate Transition Benchmark (CTB) exclusions. ⚠️Still, there is a major concern in the industry regarding PAB exclusions, which would require asset managers to divest from companies that, for example, are above the previous thresholds, but which are at the same time large issuers of #greenbonds (where the green use-of-proceeds is guaranteed). In this regard, even ICMA - International Capital Market Association has asked for an exception to the application of PAB exclusions at issuer level when investing in green bonds.

Is ESG in asset management moving from a disclosure based regime towards categorisation? The European Supervisory Authorities certainly think it should. Read more about the views expressed by the ESAs, and the potential direction of travel for sustainable investing in the EU, here: https://lnkd.in/evSEVHzf #ESG #AssetManagement #Funds #ETFs #sustainableinvesting #ALG