Climate Change Compliance
Post the announcement from the FCA in October setting out its proposals to improve climate change disclosures by issuers and information to consumers on green financial products and services, many of the Industry’s Asset Management companies are now looking into the changes needed to support compliance.
APS have experts and consultants to support you through those changes and we believe it starts with philosophy and strategy, leading into governance and integration of the principles, risk modelling / management and finally disclosure.
Each of these areas is required to support the other. For example, scenario analysis will inform investment strategies and therefore how strong/weak the criteria are for ESG scores and benchmarks. These are also informed by disclosures from companies in which they invest in. Which overall enables an understanding of the risks, which is an iterative process, and subsequently informs disclosures.
Incorporating climate change into investment decision-making means new assessments and means of marking the quality of an investment. Common ways to do this have been to incorporate ESG scores into investment decisions. These enable decision-makers to assess the Environmental, Social and Governance standards.
APS are change and transformation experts and have expertise in delivering change in complex regulated environments.