ESG Service in the Financial Sector
MAQIT ESG service in the financial sector includes integrating sustainable policies among the priorities of financial entities. It is part of the broader European legislative background aiming at connecting the finance industry to the specific requirements of the global economy, which is beneficial for the environment and our society.
Whats is ESG?
ESG outlines the environmental, social, and governmental factors integration throughout the companies' investment process and into the internal organizational structure. It involves:
implementing procedures regarding the analysis of investment opportunities from a non-financial standpoint,
management of sustainability risks, and
transparency and disclosure of ESG factor integration.
What is the role of the EU in this changing landscape?
Since March 2018, the European Commission has moved forward with a series of necessary steps towards financing sustainable growth and creating a more circular economy in the financial sector. The Action Plan launched by the EU consists of two main points:
improving the contribution of finance to sustainable and inclusive growth by funding society's long-term needs,
strengthening financial stability by incorporating environmental, social and governance (ESG) factors into investment decision-making.
What are the EU Action Plan's objectives and what are the implications for companies?
The European Action Plan concerns the achievement of sustainability and the transition to a low-carbon, more resource-efficient, and circular economy. Following this overall vision, the EU is currently carrying out some specific and significant actions:
Re-orienting capital flows towards a more sustainable and inclusive economy:
Establishing an EU classification system for sustainable activities
Creating standards and labels for green financial products
Fostering investment in sustainable projects
Financial risk management, resulting from climate change, resource depletion, environmental disruption, and social issues:
Better integrating sustainability in ratings and market research
Clarifying institutional investors' and asset managers' duties
Incorporating sustainability in prudential requirements
Long-terminism and transparency fostering
Strengthening sustainability disclosure and accounting rule-making
Fostering sustainable corporate governance and attenuating short-termism in capital markets
How can MAQIT help you?
All stakeholders involved in financial processes are affected by the implementation of the new ESG requirements. Not only is this a pure compliance practice, but also a great business opportunity. MAQIT's engagement in this scenario focuses on 3 specific business lines:
Compliance with ESG regulations
We ensure that all financial players are compliant with the European Commission's regulations already in place:
Regulation (EU) 2019/2088 (compliancy deadline 10th March 2021)
EU Taxonomy Regulation
ESG-driven amendments to AIFMD and UCITS directives (planned for Q1 2021 to take into force Q1 2022)
Strategy for ESG Investments
We support financial firms to develop a business strategy in relation to any new outbound regulations, and to build an investment-oriented strategy.
Operating Model (i.e. self-managed funds)
Analysis of governmental incentives
Listing in LGX
We notify and provide guidelines on the implementation of theAction Plan according to ESG directives and regulations.
Please visit our Circular Economy & Sustainable Advisory page for more information.