With environmental, social and governance (ESG) performance being increasingly tied to long term value and growing concern over the risk of stranded assets, screening and evaluating an organisation’s ESG issues is now a central part of almost all investment processes.
Our ESG Screening services:
- Leveraging professional experience and software tools to screen for potential ESG risk exposure via pathways such as industrial sector and geographical region.
- Applying our extensive due diligence experience and the subject matter expertise of colleagues when identified risks require deeper analysis.
- Providing specific advice on how to improve ESG rating scores, mapping actions to the Sustainable Development Goals (SDGs) and/or identifying Task Force on Climate related Financial Disclosure (TCFD) aligned reporting metrics.
- Holding workshops with and seek to set out improvement strategies that reduce risk and enhance value.
Our experts at Anthesis can help clients to navigate ESG policies by implementing improvement strategies after ESG due diligence assessments.
ESG screening for new investments
Whether a new M&A, listed equity or debt investment, Anthesis supports clients in undertaking both high level ESG screening assessments and in-depth company reviews. We do this by blending our ESG due diligence expertise, detailed ESG management experience and, where appropriate, ESG screening tools such as the Anthesis designed software tool, RiskHorizon.
We can assess the commercial implications of ESG factors in any investment process or portfolio, providing an ESG risk rating where requested. Increasingly we help our clients understand whether target companies can be considered “sustainable” under the EU Taxonomy and similar criteria.
ESG screening for existing portfolios
We use the same high-level ESG screening approach to evaluate existing portfolios of investments or assets for current or future ESG issues. This may cover the broad spectrum of ESG issues or be focused on a single topic such as exposure to climate change. This allows clients to prioritise risk management actions and capitalise on opportunities.
With listed equities, we also leverage our understanding of the methodologies and nuances of the ESG ratings, such as MSCI and S&P, guiding on how a company’s systems and related disclosures align with their requirements.
Where ownership or shared investment allows us to work with company management to improve performance, Anthesis undertakes more in-depth “Portfolio Company ESG Reviews”. These routinely start with sharing an ESG due diligence checklist to undertake an “ESG Healthcheck”; a gap analysis of the issues under management or otherwise. Then we will often involve helping to set formal key performance indicators KPIs, with clear action items or targets for improvement.
ESG Risk Assessment Tool
RiskHorizon, designed by Anthesis, provides an ESG screening tool, powered by the SASB Materiality Map and a suite of corresponding international data sets. Enter key company details into its ESG risk assessment template and RiskHorizon facilitates screening across a range of legacy and future ESG risk scenarios to model the risk and opportunity landscape at an investment.
RiskHorizon further provides ESG due diligence checklist allowing the assessment of the maturity of the company’s maturity presented as an ESG risk rating score.
It is a ground-breaking, cost-effective, web-based tool spanning millions of data points from more than 175 countries, covering 30+ global ESG risks.
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Anthesis has offices in the U.S., Canada, UK, France, the Netherlands, Belgium, South Africa, Ireland, Italy, Germany, Sweden, Spain, Portugal, Andorra, Finland, Colombia, Brazil, China, the Philippines and the Middle East.