K2 Integrity Launches Independent ESG Strategy Certification
Risk and financial crimes advisory firm, K2 Integrity (K2), has introduced an impartial certification programme for environmental, social, and governance (ESG) plans for funds and fund managers.
The product will continue to aid clients in addressing risk, meeting regulatory and compliance needs, and assessing, designing, and implementing market-specific certifications and training.
K2 Integrity will apply its proprietary framework to undertake a comprehensive examination of qualitative and quantitative data to confirm that a fund and its manager adhere to ESG best practices.
According to K2, its evaluation takes into account current legislation that enhances trust and transparency about ESG criteria. It also reduces the risk of "greenwashing," which has become increasingly prominent as the demand for ESG investments has increased.
Andrew Rabinowitz, Co-CEO of K2 Integrity, said:
"The need to validate and quantify ESG initiatives has never been greater, as investors, regulators, and other stakeholders pay closer scrutiny to funds’ activities. Funds and fund managers must make sure they are following through on their ESG commitments. The assessment certification brings together ESG, regulatory, legal, industry, training, and certification expertise."
This ESG accreditation is contingent upon a fund's voluntary self-disclosure and independent assessment by K2 Integrity specialists, who study, evaluate, and authenticate the fund's commitment to investors. Independent certification, as opposed to management self-reporting, provides an assessment of strategy and processes and verifies alignment with industry best practices.
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According to a recent poll conducted by Callan, 78% of asset managers currently include ESG in their investment choices. And as of the first quarter of 2022, according to Morningstar, more than 2,000 asset managers globally oversee around $343 billion in sustainable funds, with such strategies receiving more than $96.6 billion in net new deposits during the period.
VelocityEHS and Frostbyte Consulting have teamed up to strengthen and accelerate the installation of software that enables businesses to easily track and accomplish ESG targets.
According to the organisations, PwC and Sphera are also collaborating to develop a more robust ESG digital management platform that would assist businesses to boost their ESG efforts and responsibility.
Source: Environmental Leader
