5 Step Guide to Sustainability in Asset Management

🌱 Sustainability is an increasingly important consideration for organisations of all types, including those in the Asset Management industry. The benefits of prioritising sustainability are not limited to environmental impact for future generations, but also create economic benefits such as reduced waste and increased efficiency, resulting in cost savings for organisations and individuals.

Taking meaningful steps towards sustainability can seem overwhelming, so we’ve developed a 5-step approach to help Asset Management professionals prioritise and implement sustainable practices within their organisations.

✅ 5 Step Approach:

1. Assess your current sustainability practices: Understand the current state of your organisation's sustainability practices and identify areas for improvement. This may include any measurement that is currently undertaken for utilities such as water and electricity, or even recycling. This assessment should also include a comparison to industry standards and best practices to determine where you are compared to other comparable organisations.

2. Develop a sustainability strategy: Develop a comprehensive sustainability strategy that aligns with your organisation's values and goals. This will include specific, measurable, and achievable sustainability goals that align with your organisation’s values. It is a great idea to include stakeholders across the organisation with perspectives and ideas on the strategy.

3. Integrate sustainability into investment decision-making: Incorporate sustainability considerations into the investment process, such as evaluating the environmental, social, and governance (ESG) performance of potential investments. This may require changes to business operations, product design, or even supply chain management.

4. Communicate and report on sustainability efforts: Communicate your sustainability efforts to stakeholders, including investors and customers, and report on progress made towards sustainability goals. Organisations that are serious about sustainability create a reporting cadence throughout the organisation, and benchmark progress.

5. Continuously monitor and improve: Continuously monitor and evaluate the effectiveness of your sustainability practices and make necessary adjustments to improve performance. It is recommended that you review your goals against international targets for sustainability, as they may change as environmental circumstances change.

✏️ ❓Here are actionable questions to get started:

  • What is the organisation's policy on reducing carbon emissions and addressing climate change?

  • Does the organisation have goals or targets for sustainable practices, such as reducing waste or increasing energy efficiency?

  • How does the organisation manage its water use and protect water resources?

  • How does the organisation address biodiversity and conservation in its operations and supply chain?

  • What steps is the organisation taking to ensure its products or services are sustainably designed and produced?

  • How does the organisation engage with stakeholders on sustainability issues, including employees, customers, and communities?

  • How does the organisation measure and report on its sustainability performance?

  • Does the organisation have any certifications or awards for sustainability?

  • How does the organisation assess and manage potential environmental and social risks?

  • What is the organisation's plan for addressing sustainability risks and opportunities in the future?

Sustainability is a crucial consideration for Asset Managers professionals as they seek to align their investment practices with their values and goals.

By following a systematic approach, organisations can understand and create foundational strategies for sustainability that are specific, measurable, and achievable and are governed by a process that continuously monitors and improves performance.