The ever-increasing focus by the Regulators on the accountability of senior management, particularly when things go wrong, emphasises how important it is for individuals in senior positions to have a clear understanding of what is expected of them. This succinct course is designed to assist Senior Managers to have a full understanding of what they need to do to achieve compliance with the rules under the obligations created by the Senior Managers and Certification Regime (SMCR).
Behind the increased demand for environmental, social, and governance (ESG) investing is a heightened regulatory focus and a greater need for transparency and standardization. The ESG landscape is evolving at a rapid pace and requires additional resources to meet investor and regulatory expectations.
Our dedicated advisory practice helps firms of all sizes develop and monitor ESG programs to mitigate risk, make informed choices, grow profitably and sustainably, and combat greenwashing in the process.
We provide global compliance and sustainability expertise to review and develop ESG programs based on best practices, current regulatory requirements, and robust oversight processes. Our support covers the following areas:
- Policies & Procedures Development
- Carbon Footprinting
- Net-Zero Management
- DEI Baselining and Training
- Portfolio Performance Assessment
- Reporting (UN PRI, TCFD, SFDR)
- Marketing and Disclosures Review
- Portfolio ESG Risk Monitoring – Private and Public Investors
- Annual Portfolio Carbon Footprinting
- Annual Portfolio Climate Risk Analysis
- Portfolio Testing
- Disclosure Verification
- Principles for Responsible Investment (UN PRI) – Report Readiness and Assurance
- Annual ESG Compliance Review
What is ESG?
Environmental, social, and governance (ESG) is a lens that can be applied to any form of investing to consider non-financial factors that are not traditionally reported to assess an investment’s overall worthiness.
In recent years, firms increasingly add ESG metrics to their investment processes to provide for more complete analyses and support better investment decision-making. Discussion of ESG activities is also being added to annual reports and, in some cases, being built into standalone ESG reports.
Covers themes that impact the Earth, both positively and negatively. Includes climate change, natural resources scarcity, pollution and waste, permitting, and environmental opportunities.
Encompasses items relating to the firm’s leadership and board as well as the firm's implementation of ESG policies. Includes board composition, diversity of the board, ethical business practices, lobbying, political contributions, account and tax transparency, and relationships with the SEC and other regulatory bodies.
ESG by the numbers
According to the Morningstar Global Sustainable Fund Flows Report as of October 2020:
Global inflows into sustainable funds were up
in the third quarter of 2020 to USD 80.5 billion
Assets in sustainable funds climbed 19% to
The number of global sustainable funds launched in 3Q 2020 was
breaking the record of 159 launches in Q4 2018
Why work with us?
- Unmatched Expertise: Benefit from a trusted and experienced partner with in-depth knowledge of the market and regulations
- Comprehensive ESG Solution: Support across the spectrum of ESG program maturity in one comprehensive offering
- Stay Ahead of the Shifting Landscape: Balance demands from investors, regulators, and stakeholders while keeping up with constant changes in the ESG space
- Fee Transparency: Predictable fee model helps avoid scope creep – more fee transparency where others may have a daisy-chain of SOWs
Environmental Justice – The Investment Risk You May Be Missing
President Biden has made environmental justice a focal point of his administration. Some of his first actions as president were to reorganize environmental justice councils within the federal government and charge them with ensuring all federal agencies adopt the all-of-government approach outlined in his executive order “to secure environmental justice and equitable economic opportunity.” More recently, his COVID-19 stimulus plan and proposed infrastructure plan include unprecedented investments to address historical racial inequities.
Join us as experts from our ESG advisory team explain what environmental justice is, why it warrants such a sweeping approach, how businesses can (or should) be involved, and why investors should care about it.
July 29, 2021
The FCA’s Business Plan for 2021/22 is now live, reflecting a major shift in policy objectives and a top to bottom review of the FCA’s own objectives and priorities. We outline the key changes and challenges identified, and what they mean for firms.
- Managed Services
July 22, 2021
This year, heads of state, climate experts and campaigners will meet at the 26th United Nations Climate Change conference (COP26) to agree coordinated action to tackle climate change, but which developments are likely to be most important from the perspective of the financial services industry? And what does all this mean for firms in the future?
June 30, 2021
Following the release of the CFA Institute's Exposure Draft of ESG Disclosure Standards for Investment Products, we outline what the standards include, the related timelines, and what these changes mean for firms.
- GIPS Standards
June 15, 2021
Reinforcing our commitment to work towards implementing ESG considerations in the global investment processes and a more sustainable financial system, we have become a signatory to the United Nations-supported Principles for Responsible Investment (PRI).
- ACA News
June 03, 2021
Following the SEC’s 2021 Examination Priorities, ESG examinations are in full swing, and most advisers are candidates. In this compliance alert, we outline what the regulator expects and what your next steps should be - whether you have ESG strategies or not.
May 18, 2021
While environmental justice is rarely called out as an ESG topic, it sits squarely at the intersection of some of the most pressing ESG challenges that we face today
Our leadership team
Dan is a Partner and senior practitioner heading the ESG advisory practice.
Crista is a Partner overseeing the ESG advisory practice and brings over 15 years of experience in investment performance consulting.
Alyssa is a Managing Director of Client Development leading growth and client engagement for ACA’s ESG advisory practice.
Jessica is a Director and the technical lead on all environmental work undertaken by the ESG team.
Peyun Kok is a Director and the technical lead on all social work undertaken by the ESG team.
Dani is a Principal Consultant and the technical lead on all governance work undertaken by the ESG team.
With less than six months to go until UK investment firms are subjected to a completely new prudential regime, a recent survey reveals that the industry is vastly underprepared. The data shows that just 4% of respondents are ready and capitalised for the FCA’s new Investment Firm Prudential Regime (IFPR) coming into effect in January 2022. Learn more about what this means for firms.
Waters Rankings 2021 Name ACA Group's ComplianceAlpha® Best Anti-Money Laundering Compliance Solution Provider
Our ComplianceAlpha® platform has been named Best Anti-Money Laundering Compliance Solution Provider in the Waters Rankings 2021.
ACA's Regulatory Reporting Monitoring & Assurance (ARRMA) service winner of the 2021 HFM European Technology Awards
Within a year of launching, ACA Group is delighted to announce that our ACA Regulatory Reporting Monitoring & Assurance (ARRMA) service has been selected as Best Regulatory Reporting Solution in the 2021 HFM European Technology Awards.
Senior management in Financial Services firms have a responsibility to ensure their employees have sufficient knowledge and understanding of the Regulatory environment they are working in. This knowledge helps in emphasising the need for compliance with policies and procedures in order to protect the firm and the individual from failing to “do the right thing”.
This course is specifically designed to assist Senior Management in meeting their statutory and regulatory obligations.