In order to meet the increasing demand for Environmental, Social and Governance (ESG) focused opportunities, the Association of Institutional INVESTORS’ ESGactionTM Council partnered with eVestment to develop GOODquestionsTM.
This open framework for common ESG-related questionnaires for investor, plan sponsor, and consultant RFPs, RFIs, DDQs, and 15(c)s, facilitates more accurate and adaptable ESG reporting from asset managers, prevents the unhelpful proliferation of forms, and frees up time and attention to focus on the substance of disclosures.
The goal of the two-year collaborative initiative was to bring greater transparency to the market for institutional ESG strategies and ease the operational burdens of allocators and managers alike.
Many firms have undertaken supplemental data collection in order to gather the ESG data they need to evaluate and compare ESG managers. But a lack of uniformity created inefficiencies throughout the insitutional market, frustrating both allocators looking for deeper data and managers who struggle to keep up with ongoing data request from different sources in different formats and unique RFPs.
With dozens of qualitative fields, the new ESG questionnaire is helping ESG managers, who input their responses, better articulate not just their ESG approach but how they implement it. With richer responses, consultants, and investors can better understand the differences among ESG products.