Asset Managers Must Collaborate on Risk and Compliance – IA

A new report from the Investment Association and Deloitte offers recommendations for asset managers on the net zero transition.

A new report by the Investment Association (IA) and Big Four accounting firm Deloitte outlines how asset managers’ risk and compliance functions can help them in their transition to net zero.

It covers six key themes: credible net zero plans, governance, culture and incentives, climate risk management, greenwashing, customer treatment and holistic consideration of ESG.

The report recommends a collaborative approach to risk and compliance functions within an organization, which can improve the ability of investment managers to unlock and exploit opportunities while minimizing the risks associated with transition.

Other risk and compliance recommendations in the report include advising the entire business on regulations, expectations and guidance on transition plans, identifying and integrating climate risks into the risk management framework risks and ensure that the climate risk management strategy is aligned with the transition plan.

Paul Scaping, public policy specialist at IA, said: “Investment managers have an important role to play in achieving a net zero economy and many companies have joined governments and other businesses in committing to reach net zero.

“As with all other functions, it is important that risk and compliance teams are equipped to support these commitments, achieve climate goals and meet client expectations.”

Read more articles like this on Regulation Asia’s sister publication, ESG Investor.

A new report from the Investment Association and Deloitte offers recommendations for asset managers on the net zero transition.

A new report by the Investment Association (IA) and Big Four accounting firm Deloitte outlines how asset managers’ risk and compliance functions can help them in their transition to net zero.

It covers six key themes: credible net zero plans, governance, culture and incentives, climate risk management, greenwashing, customer treatment and holistic consideration of ESG.

The report recommends a collaborative approach to risk and compliance functions within an organization, which can improve the ability of investment managers to unlock and exploit opportunities while minimizing the risks associated with transition.

Other risk and compliance recommendations in the report include advising the entire business on regulations, expectations and guidance on transition plans, identifying and integrating climate risks into the risk management framework risks and ensure that the climate risk management strategy is aligned with the transition plan.

Paul Scaping, public policy specialist at IA, said: “Investment managers have an important role to play in achieving a net zero economy and many companies have joined governments and other businesses in committing to reach net zero.

“As with all other functions, it is important that risk and compliance teams are equipped to support these commitments, achieve climate goals and meet client expectations.”

Read more articles like this on Regulation Asia’s sister publication, ESG Investor.

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