ESG Integration is an approach to include sustainability issues in investment decisions. ESG integration is the incorporation of ESG indicators into the investment process and traditional financial analysis. It can lead to a better risk/return profile of a portfolio. According to the market report "Nachhaltige Geldanlagen 2017"*, this is the most widespread approach in Switzerland.
Inrate supports asset managers and institutional investors in the ESG integration. Our interdisciplinary teams combine financial market knowledge with sustainability knowledge from the social, environmental, governance and energy sectors. ESG integration can be taken into account in geographical allocation (countries), sectoral allocation (industries) and at individual share level (companies). The approach can be applied to all traditional and alternative asset classes.
In practice, Inrate supports our customers as follows:
- Workshops for managing directors, investment committees and financial analysts
- Determination of sustainability principles
- Consideration of ESG in the investment regulations
- Inclusion of ESG ratings and ESG indicators in the investment process
- Optimization of external communication