Case study: Integrating third party and internal ESG data into investment decision making

Situation

A large asset manager required an integrated approach to incorporate third-party and internal Environmental, Social, and Governance (ESG) data into their investment decision-making process. The goal was to enhance ESG data-driven decision-making, improve data quality and management, and simplify ESG data processing and system integration.

Approach

• Projective Group was engaged to develop and deliver an ESG Canonical Data Model (CDM) as part of an enterprise-wide data management architecture. We assembled a team of data modelers to collaborate with the ESG Investment department and Operations counterparts.

• Next, we conducted a pilot to validate the quality of the selected data modelling team and the concept of a CDM. We secured an agreement on the concept, ensuring alignment with company standards.

• For our data model implementation approach, we adopted industry models and supported their implementation. Simultaneously, we developed ESG data models internally based on defined ESG data elements to identify (non-) investable assets, with detailed data and process analysis. This work resulted in the delivery of a comprehensive domain model.

• Finally, we implemented the ESG Logical Business Model using design and data catalog tooling. To ensure all stakeholders could work with the ESG Logical Business Model, we provided guidance for the implementation of the ESG Logical Data Model and Physical Data Model by DevOps teams.

Result

During the project, we created a cohesive ESG data model for the Investments, Operations, and IT departments. This data model improved decision-making processes by leveraging high-quality ESG data.

An addition, we simplified the ESG data processing through optimised data and information architecture, simplifying ESG data processing and system integration.

This case study showcases our methodical approach to integrating ESG data into investment decision-making, enhancing data quality, management, and overall decision-making efficiency for our clients.

To speak to our team about enhancing your use of ESG data, get in touch with us today.

About Projective Group

Established in 2006, Projective Group is a leading Financial Services change specialist.

We are recognised within the industry as a complete solutions provider, partnering with clients in Financial Services to provide resolutions that are both holistic and pragmatic.  We have evolved to become a trusted partner for companies that want to thrive and prosper in an ever-changing Financial Services landscape.