Skip to content

ESG Practical Management: Impact, SRI, & Sustainable Investing

BITA Risk logo

introduction

BITA Wealth brings practical ESG management to your desktop in four easy steps

ESG is one branch of sustainable investing. Many investment firms have been screening investments by a number of the ESG factors for years, alongside Socially Responsible Investing and Impact investing approaches.

While each of these terms have specific meanings, from an investment perspective, any investment’s exposure to them can be measured by a series of factors: percentage of revenue attributed to tobacco, rating agency score for board diversity, tonnes of CO2 emitted, investment in social or environmental not-for-profit projects.

BITA Wealth brings the complexity of this data and client preferences for or against these factors together in its portfolio modelling function, to help understand exposures, check conflicts with preferences and assess the impact of making changes to meet sustainable preferences on risk, yield and return through portfolio ‘what-if’ analysis.

The four easy steps:

  1. Capture the client preferences for sustainable investing: from a simple “green” preference to specific ESG factors and Impact statements, all within one flexible framework addressing business and regulatory requirements.
  2. Review the portfolio: see the ESG factor exposures, conflicts between client preferences and exposures, comparison between the portfolio and benchmark exposures, and get a complete summary and detailed report to review and share with the client.
  3. Manage the portfolio exposures: through portfolio ‘what-if’, change holding weights and immediately see how portfolio exposures and conflicts change. See where holdings are conflicted and what the impact of changing them is on risk, yield, asset allocation, and other metrics.
  4. Report: share the data with your client. Discuss and engage on how the ESG preferences impact on the portfolio and how changes have been made to improve positive exposures and limit negative exposures, and meet their preferences. You can also illustrate the impact of over-constraining the portfolio.

You can choose which factors you want to assess and the data provider for those factors or decide to use one of our data partners to provide the inputs.

function / benefits / users

FUNCTION

  • full coverage of SRI, ESG, Impact, Sustainable and product preference collection
  • ESG analysis of portfolio in absolute and relative terms overall and at holding level
  • identification of holding / client preference conflicts
  • ESG modelling and 'what-if' analysis with risk and yield impact
  • ESG reporting and monitoring

BENEFITS

  • rapid end-to-end ESG management on bespoke and model-based portfolios
  • powerful client engagement tool
  • flexible but structured client preference framework that covers all options
  • transparent analysis of ESG exposures
  • ESG 'what-if' analysis
  • rapid management of and clear understanding of impact of holding changes on exposures
  • ongoing monitoring
  • integrated with Portfolio Management

USERS

  • advisors
  • client managers
  • portfolio managers
  • family offices
  • trusts
  • charities

use cases

BITA Wealth is an end-to-end solution, used in different ways by our client firms. Below are five high level use cases together with functions, benefits and potential users

Our Solution Finder below helps you find the right solution for your firm. If you know the name of the corfinancial product that matches your needs, please click on ‘Product’ and select the appropriate item. If you don’t know which corfinancial product would suit you best, please click on either ‘Market’ or ‘Functionality’ to see which of our solutions matches your type of firm or the specific functionality you are looking for.