Privé Technologies is introducing EU compliant ESG preference selection into the advisory journey. Based on the on the client’s sustainability preference a personalized portfolio proposal can be generated.
ESG-oriented investments were once presumed to be a passing fad or a feel-good trend, but it has become so much more than that. According to McKinsey, since 2014 global sustainable investment has gone up by a whopping 68%, with the figures reaching past US$30 trillion. This rapid acceleration has largely been driven not only by a heightened consumer awareness on the impact of their investments but global governmental change set to encourage ESG investments, such as the EU’s disclosure regulations.
Here at Privé Technologies, we are all too aware of the growing need for corporate infrastructure dedicated to supporting ESG investments. There are many levels and layers to selecting the appropriate ESG-oriented funds for clients, which can make the process difficult and time-consuming for advisors.
One such way we have successfully implemented ESG infrastructure into an existing solution is the HDI FundsGuide.
The HDI FundsGuide, built in collaboration with HDI Insurance, allows for the complete digitisation of the end-to-end advisory process. Sales partners and clients can enjoy a seamless transition from the initial risk profiling, investment preference selection to portfolio generation and optimisation, in addition to being able to complete the process with a compliant advisory protocol, all in one place.
Build Personalized ESG Portfolios
Within the HDI FundsGuide, clients can customize their portfolios and personalize it to their specific wants. Firstly, they can choose the extent to which their portfolio is sustainable, ranging from 0% all the way to 100%. The guidelines for what constitutes a sustainable investment adheres to the EU’S Taxonomy Regulation (2020/852) and Disclosure Regulation (2019/2088). Clients can select their preferences on an environmental, social, and corporate governance level. They can also choose to focus their portfolio on certain key topics, such as Environmental Protection, Impact Investing, Renewable Energy, and Water. In addition, there are 15 other standard options that clients can choose from, which range from topics like Health, Technology, Megatrends and Gold.
Not only can clients select topics to include, they can also exclude undesirable topics from their portfolios. These are themes that contain economic activity which may have a negative impact on sustainability factors, such as greenhouse gas emissions, water pollution, and social issues. In this way, clients can be absolutely sure that their portfolio would not contain themes that may disagree with their moral and social views.
The market data used to categorize sustainable funds can come either from internal data sources or from external providers, such as Morningstar’s Sustainability Rating.
The fact remains that companies who invest into building ESG-oriented infrastructure report higher equity returns. Simply put, companies who care about sustainability perform better than those that do not. Following this vein, companies should invest earlier, not later, in catering to the ESG boom and attending to this new and surging demand in the market.
Find out how Privé Technologies can support you on this journey and get in touch with us today for more information.
Chief Revenue Officer, APAC
Head of Marketing & PR
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