Skip to main content

Alternative Credit News, Hedge Fund News, Private Equity News

SBAI Publishes ESG Implementation Toolkit

The SBAI has released a toolkit for asset managers and allocators on the practical implementation of responsible investment in different alternative investment strategies and asset classes, the latest instalment of its work on Responsible Investment.

Much of the guidance provided for implementation of responsible investment is geared towards long only equity portfolios. Whilst there are some elements that are transferable to other alternative asset classes, there are many additional considerations dependent on factors such as asset class, instrument, portfolio concentration, and average holding periods. The SBAI's toolkit explores these issues along with data considerations in equity long/short, credit, macro, and systematic strategies.

Bradley Belt, Vice Chairman of Orchard Global Asset Management, said “The SBAI’s work on Responsible Investment is a valuable contribution to the ongoing discussions on integration of ESG risk factors into investment decision-making. In highlighting the need for different approaches, it makes an important distinction between rigorous investment processes which account for any financially material risks, including ESG risks, and pursuing investment strategies with dedicated ESG objectives. This latest SBAI guidance enhances asset manager and allocator understanding of the ESG issues that are relevant to both the strategy and the asset classes traded.”

SBAI’s Responsible Investment work aims to help educate managers and institutional investors around the nuances of ESG and Responsible Investment both when integrating financially material ESG risk into investment and risk management processes, and when running dedicated products with specific ESG objectives. 

Maria Long, Research and Content Director of the SBAI, said “Our mission is to solve for better and improve industry outcomes. Our Working Group discussions have highlighted the importance of allocators and asset managers being able to have conversations that take into account the nuances of different alternative investment strategies. Through collaboration with our community of asset managers and allocators, this toolkit provides guidance on implementing robust and thoughtful frameworks and provides key topics for discussions between asset managers and investors to ensure any ESG objectives are aligned.”

This toolkit is a result of the work conducted by the SBAI’s Responsible Investment Working group, which consists of over 150 industry professionals from the SBAI community of over 140 asset managers representing over $1trn in AUM and over 90 institutional investors overseeing $4trn in assets.

Content role

© The Sortino Group Ltd

All Rights Reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or scanning or otherwise, except under the terms of the Copyright, Designs and Patents Act 1988 or under the terms of a licence issued by the Copyright Licensing Agency or other Reprographic Rights Organisation, without the written permission of the publisher. For more information about reprints from AlphaWeek, click here.