portfolio institutional: Why was this partnership undertaken?
Mark Kerns, CEO of Adapa Advisory: Adapa Advisory and Integrum ESG are aligned in the belief that asset owners struggle to access portfolio-level ESG assessments that they can understand and afford. Instead, they often rely on their asset managers to ‘mark their own exam papers’.
It is vital for pension funds to receive consistent, transparent and consolidated ESG reporting to optimally meet trustee, executive, member and regulatory reporting demands, as well as fulfilling their fiduciary duties.
Our team also has a breadth of experience in the wealth and bank segments and we plan to broaden the Integrum ESG penetration within those areas.
What benefits will it bring to both companies?
Shai Hill, CEO, Integrum ESG: The demand for ESG reporting solutions to support pre- and post-trading, management information, regulatory reporting and many other areas continues at pace.
At Integrum, we have developed proprietary approaches to these challenges and Adapa will support our business development efforts with wealth managers, banks and pension trustees. This also supports Adapa’s own advisory services activity where ESG reporting support for clients is a key component of the company’s strategy.
What benefits will it bring to institutional investors?
Mark Kerns: Institutional Investors will have the ability to view ESG reporting and analytics at a security, sector and portfolio level across their organisation from front to back office and, importantly, meet a variety of demands across research, client reporting, the requirements of regulation and broader internal and external stakeholder requirements.
Shai, you mentioned at the portfolio institutional ESG conference the problem of reliable ESG data: has this improved?
Shai Hill: Not at all. Most institutional investors receive opaque ESG assessments; the scoring logic and the data which may or may not underpin the score is a black box.
What needs to be done to improve the situation?
Shai Hill: Institutional investors need to acknowledge that they are not fulfilling their duty by just relying on a set of ESG grades they cannot understand – yet feel reassured that a ‘very well-known brand’ is sitting behind these grades. ESG ratings are like credit ratings before the credit crisis. Institutional investors need to take more responsibility for analysing and understanding the ESG risks in their portfolios and the increasing demand from their clients for access to this information.
Shai Hill: Institutional investors need to acknowledge that they are not fulfilling their duty by just relying on a set of ESG grades they cannot understand.
Mark Kerns: It is vital for pension funds to receive consistent, transparent and consolidated ESG reporting to optimally meet trustee, executive, member and regulatory reporting demands.
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