4 min

Retrospective of Investment Day 2024 - ESG and the SDGs

On May 22, WeeFin took part in the Investment Day organized by Finance Innovation.
Written by
Pauline BERTHOULOUX
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Posted on
Jul 11, 2024

On this occasion, Sabrine Aouida, co-founder and Chief Impact Officer, took part in the roundtable discussion "ESG & ODD, greening your Management in a thousand and one ways, but not only!"

The financial sector is renowned for its capacity to innovate, and ESG is no exception. Indeed, to adopt practices in line with their values and convictions, asset management companies have developed multiple investment strategies.

With this in mind, we have developed the ESG Connect platform to provide financial players with a high level of flexibility while remaining data agnostic.

We did not set out to create a new ESG dataset but rather to improve the use of existing ESG data, so that every investor can retain sovereignty over their data, take ownership of it, and make good use of it. In this way, we provide ESG Connect users with 1) the expertise to understand this data, and 2) the technology to automate the integration of ESG assessment strategies and methodologies.

This plurality of ESG approaches is also documented in the Sustainable Finance Barometer we published in 2023. It analyzes the level of ambition and transparency of asset management companies.

We were able to observe the diversity of approaches adopted by the various players, whether in terms of ESG data selection, evaluation methodologies, choice of commitments, approaches to dialogue with issuers, etc.

Convinced that the standardization of strategies by the regulatory framework does not allow asset managers to defend their convictions, we promoted a less standardized approach as part of the consultation on SFDR Level 1. We highlighted three key areas for future regulatory change:

  1. Ensure implementation of minimum requirements for ESG funds (exclusions, name, commitment)
  2. Specify the concepts that investors are expected to understand (sustainable investment, transition, impact)
  3. Improving reporting

At the same time, to be able to achieve their ambitions through the deployment of appropriate ESG strategies, players need access to the right level of expertise and technological tools, in particular to meet several challenges:

  • Data multiplicity (cross-reference several sources, whether private or public, on the same metric to identify potential discrepancies, define a decision tree to prioritize data sources, etc.).
  • The scalability of ESG (for example, climate data has gone well beyond the initial tCO2 metric, and is now deployed in the form of decarbonization trajectories, alignment with the Paris Agreements, etc.), which requires the ability to mix several metrics in order to refine an analysis.
  • Alignment with ever-changing regulatory requirements (PAI, sustainability risks, IS, biodiversity, etc.).

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