A large U.S. wealth manager made a commitment to incorporating environmental, social, and governance (ESG) practices into its investment programs. They developed screening tools for their many clients — both family and institutional — that wanted to factor specific values into their portfolios.
But “values” means different things to different people. Each client wanted their investments to be impactful in a different way, and each client had their own preferred investment strategy. Because they offered a variety of ESG strategies, our client needed an easy-to-understand framework for explaining their approach. They also needed a way to inform their clients about different ESG strategies and help clients identify which approach was a fit for them.
We worked directly with the co-head of the impact investing division to gather specific information about her strategic approach. We took into account what data they used and how they used it, as well as how those evaluations factored into more traditional financial analysis. We precisely described the different strategies available to investors, which clients tended to use certain strategies, and for what purpose.
From that information, we drafted a blog piece that outlined four specific ESG strategies for responsible investors and each one’s suitability for different situations. To make this easily understood, we used examples tying the strategies to approaches that the clients already knew. We eliminated jargon and explained core concepts using tight, everyday language.
We helped this wealth management firm develop a growing business line while keeping the focus on client needs. It remains a core educational blog on our client’s website and its framework has been used as a foundation for advisor talking points and other communication about sustainable investing with investors.