What does ESG mean?
Environmental Social Governance, or commonly referred as “ESG”, refers to a range of issues that fall under the umbrella terms of Environmental and Social used to measure how a business interacts with society and the environment.
As potentially both risks and opportunities, and increasingly recognized as central to the long-term commercial success of a business, many investors are increasingly scrutinizing and prioritizing these factors as part of their financial analysis process.
ESG management has become business critical
Once purely a financial services term, ESG is now routinely used in board rooms as the useful collective descriptor for the range of aspects that relate to how a business interacts with society and the environment.
It spans climate change and wider sustainability, health and safety, employee development and retention, customer welfare, community relations, and business ethics and governance, amongst others.
ESG as a source of value to the business
Crucially, it is now understood that as both risks and opportunities, ESG factors are central to long-term commercial success. Environmental Social Governance management has become business critical.
From pension fund managers seeking to win new mandates, through to asset managers helping to invest that capital, to public or private businesses providing the opportunities for investment – actions are required to demonstrate that ESG risks and opportunities are being managed.
Increasingly complex regulation: regulatory compliance and reporting are arguably the biggest operational challenges facing Middle Eastern fund managers today.
The rising importance of ESG in investment strategies
Environmental, Social and Governance (ESG) considerations have become increasingly important in the Middle East and with the UAE declaring 2023 as the “Year of Sustainability”, fund managers are likely to feel pressure to elevate ESG in their decision making.
- The surge in family wealth: The ultra-high net worth population in the Middle East is expected to rise, resulting in more family offices in the region.
- Start-ups and venture capital: The Middle East has become a hotbed of start-up activity and venture capital.
- Emerging technologies: There are many factors driving the growth in the technology sector in the UAE and surrounding region.
With Alvear Capital, you will be in a position to assess compliance with upcoming ESG-related regulations
This will in particular cover the following:
- The Sustainable Finance Disclosure Regulation (SFDR)
- Task Force on Climate-Related Financial Disclosures (TCFD)
- Corporate Sustainability Reporting Directive (CSRD)
Scope of services
We offer strong Environmental Social Governance expertise together with our extensive project management background to ensure that your goals are met at every stage of the project. All our services align with the UN Sustainable Development Goals.
- Improve Efficiencies through Increased Automation. Efficiently adopt ESG into your organization by consolidating it into Client Lifecycle Management and eliminate silos. Increased automation reduces manual rekeying of data, improving process and data accuracy.
- Unlock Revenue Potential with Existing and New Clients. Alvear Capital enables your firm to unlock the potential to retain existing customers and attract new clients who are increasingly becoming socially and environmentally conscious in their banking and investments choices.
- Delivering effective Environmental Social Governance services. Successful ESG strategies can help businesses increase brand awareness as a sustainable brand, achieve higher profitability, improve employee productivity, align with national and global initiatives, be prepared for regulatory trends, secure preferential financing rates, and lower their resource-related costs.
Alvear Capital is a reliable partner with a strong background and proficient expertise in helping companies exceed their ESG commitments and goals. We provide comprehensive consultancy services to ensure that our clients achieve their ESG goals while working in alignment with clients’ operations and budgets.
As your sustainability advisors, the Alvear Capital team can assist you to efficiently complete your Assessment, manage ESG data and advance your ESG performance.
We will help you select a suitable solution to ensure your submission is accurately reflecting your ESG approach. This will be followed with developing a roadmap to identify improvements in future years that align with your investment strategy.
The Alvear Capital team includes experienced Sustainability Advisors and Energy Managers who support our clients in auditing their energy performance and setting up strategies to improve it. We also continuously monitor energy performance to support our clients in achieving ISO 50001 certification.
Our approach to Sustainable ESG
Our ESG services start with understanding client objectives and their national and international commitments. In addition, we make our own assessment of their operation to recommend the best projects or activities that can be a part of a successful Environmental Social Governance strategy.
Due to our multinational expertise and presence, we are able to relate to a large audience and provide tailored services for each sector and region.
We have worked in various industries, and we can seamlessly advise on optimal solutions and best practices for achieving ambitious ESG goals. Our team of in-house and partner experts covers a wide range of sustainability topics, such as Climate Change, Carbon Emissions, Energy, Water, Social Responsibility, and policies and governance.
Assessing your carbon footprint
The evaluation of the carbon footprint of your activity is essential. Your industry might be a significant contributor to the carbon problem providing greater chances of further optimization.
Alvear Capital provides an opportunity to create the lasting change necessary to draw down carbon and deliver a sustainable future. Alvear Capital has tapped into the potential of low-carbon solutions to provide energy efficiency, a key contributor to carbon emissions.
Carbon Tracking
Alvear Capital will use its experience, database, and digital analytics tools to calculate carbon emissions of any operational entity or activity. This is done to understand the aspects that generate the most carbon emissions and advise on how to reduce or minimize their impact. We do this in different ways, including:
- Gap Analysis
- Risk Assessment
- Action plan
- Policy Manual
Policy Advisory
Our advisory services are hands-on and case-by-case, starting with an assessment of our client’s current situation and objectives. We engage in client processes and give practical and effective recommendations with a high ROI to ensure our ESG strategies work now and in the future.
- Gain a deep understanding of the applicable industry standards.
- Identify the topics that are material to the activities of your business.
- Validate topics against GRI & review data relevant for the ESG report.
- Enhance Your ESG Report by closing data gaps in your GRI alignment.