HONG KONG, June 28, 2021 / PRNewswire / – GreenCo has introduced new digital valuation and management tools to address the megatrend of sustainable funds. In the wake of burgeoning green finance developments, more and more global business leaders, investors and regulators are calling for greater actions on sustainability. While there are many rating services on the market, GreenCo’s new solutions focus on providing tailor-made models for fund managers facing challenges in integrating ESG into decision making.
GreenCo’s solutions allow fund managers to monitor change by building a strategic framework and policy for climate risk management. Taking additional steps to establish assessment tools and taking a proactive approach to integrating ESG factors can also be a tactical strategy for fund managers to expand their trading network and be socially friendly.
GreenCo, as a provider of ESG solutions in Hong Kong by focusing on developing user-friendly solutions for fund managers, helps fund managers develop company-level ESG policy and disclose climate-related risks. Since a basic or comprehensive ESG policy alone is not enough to meet market expectations, in addition to policy development, GreenCo also provides concrete solutions for continuous ESG assessment and integration.
Max Tsang, director of GreenCo, aims to provide personalized ESG support to fund managers. He says: âWe all know and support Sustainalytics, Robeco, MSCI ESG Rating, Refinitiv, FactSet, Bloomberg, etc. in the promotion of ESG intelligence. All of them are reputable rating and rating solutions providers. Nevertheless, their coverage is still focused on large state-owned companies. Fund managers and analysts continue to face the challenges of a limited rating and benchmark for small and medium-sized public companies and private companies or projects. On the other hand, many fund managers wish to participate in the definition of the rating algorithm and the criteria included in the rating process. . With GreenCo, fund managers can have full control over the tailor-made valuation mechanism for their funds. This allows them to balance and take into account the opinion of their stakeholders. “
The first tool, ESG performance assessment tool, captures the main sustainability impacts of investment decisions on ESG factors, as well as the development of policies for integrating sustainability risks into decision-making processes. Fund managers can quantify the environmental, social and corporate governance characteristics of products, while performing accurate and timely benchmarking against comparable companies self-selected from various dimensions of sustainability. Thanks to our ESG assessment tool, it is possible for fund managers to build their own internal scoring and rating tool.
The second tool, Corporate carbon management tool, is a digital platform where fund managers can easily calculate and assess the carbon footprint in a scientific way. Fund managers who assess the carbon performance of issuers for active engagement, analyze their portfolio’s exposure to carbon-intensive companies through Weighted Average Carbon Intensity (WACI), or develop plans and targets for addressing climate-related risks as part of governance processes, can automatically get an overview of the GHG profile. In the future, fund managers can positively influence the issuance targets of issuing companies.
Tom liu, Principal Consultant of GreenCo, has dedicated itself to the modeling of a personalized system capable of effectively dealing with ESG risks in the management and disclosure of funds. He said: âThe world is increasingly faced with the catastrophic and unpredictable consequences of climate change, resource depletion and a host of sustainability issues, which pose threats in the short, medium and often. long term for business. While sustainable finance is widely advocated by international organizations and business initiatives these days, the most urgent action should begin with mobilizing capital to facilitate change towards sustainable development and shift global financial flows from negative outcomes. for nature towards positive results for nature. asset managers to put in place and implement a solid ESG policy framework and professional tools for quantifying the impact on sustainable development. “
Latest global development in green finance
At October 29, 2020, that of Hong Kong Securities and Futures Commission (SFC) released its consultation paper on the management and disclosure of climate-related risks by fund managers, in which the SFC proposed new mandatory requirements for Hong Kong fund managers around climate-related risks, as an action to address the implications of climate change and in response to the strategic framework announced in 2018 to support the development of green finance in Hong Kong. The proposed requirements and transition periods will be subject to the outcome of the consultation findings.
In Europe, the Sustainable Finance Disclosure Regulation (SFDR) imposed mandatory ESG disclosure obligations for all financial market participants and financial advisers in the European Union with substantive regulatory provisions in force as of March 10, 2021 for entity level disclosure at Level 1. Product level disclosure (Level 2) will be required from January 1, 2022.
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GreenCo is a specialist ESG consultancy firm that provides ESG reporting, policy advice, a digital ESG assessment solution and other strategic ESG integration solutions to public companies and enterprises seeking ESG integration. GreenCo has served over 60 public companies in different industries. GreenCo has established an international alliance with security companies, NGOs, accounting firms and asset managers for the ongoing research and development of ESG solutions.