ESG investing continues to go mainstream. From CNBC: “JPMorgan Chase wants to take sustainable investing to the next level. The biggest U.S. bank by assets has agreed to buy OpenInvest, a San Francisco-based start-up backed by Andreessen Horowitz & founded by ex-Bridgewater Associates employees, CNBC has learned exclusively. CEO Jamie Dimon said last year the bank would be “much more aggressive” in searching for potential takeovers to help it bolt on capabilities & fend off threats from fintech & Big Tech players alike. The bank’s latest move, for deal terms that couldn’t be determined, will help JPMorgan’s financial advisors customize clients’ investments in ESG, the broad category that includes environmental, social & governance factors. ESG funds have attracted record inflows this year, pushing global assets under management to almost $2 trillion.”
This is why Federated Investors bought Hermes, and we will see more of this. ESG implementation is built on better data, this is even more important on private market assets. Credentialed data verified by independent 3rd-parties allows for improved accounting treatment, lower borrowing costs & enhanced financial outcomes. The race is on for ESG implementation and the secret ingredient is streamlined data at a clients’ fingertips.