Press Release, 27 January 2021
Strengthening of ESG service offering to PwC clients
Augmenting sustainable finance regulatory compliance services
Expanding the integration of sustainability risks within the risk management approaches
In line with PwC Luxembourg’s position as ESG pioneering leader
As a leading financial centre in investments funds, and particularly in cross-border distribution and asset servicing, Luxembourg is the location of choice to support this trend. This leading position, combined with local expertise, is essential to attracting investors who are seeking performance, transparency and the high service quality related to such investments.
Following the evolution of sustainable finance related topics witnessed during the last few years, a rally has taken place towards Environmental, Social and Governance (ESG) products and ESG integration, with sustainable funds capturing a significant portion of inflows in Europe and some asset managers announcing that they will integrate ESG within their entire range of products. This trend is likely to further accelerate in the next two years due to the regulatory developments in Europe.
Virtually all stakeholders in the asset management landscape are attributing unprecedented focus to sustainability issues, and the AWM industry’s role in overcoming them. Both retail and institutional investor segments are prioritising non-financial impacts alongside financial returns, demonstrating a strong proclivity for sustainable products and managers.
During the last 18 months, PwC Luxembourg has worked hard to reflect on and develop its own sustainability risk-assessment strategy. This led to a structured approach and transparent dashboarding on ESG risk. With this in mind, the firm felt that expanding the range of solutions proposed to PwC clients was key. In addition, integrating the financial performance on top of the ESG assessment will be key for portfolio managers going forward.
What Advantage GreenGate provides is a scoring methodology to companies and funds and a life-cycle assessment (LCA) diagnosis for companies’ products and communities. It also advises companies and communities on the assessment of their sustainable path.
Benjamin Gauthier, Risk Management and Regulatory Partner said:
"Due to the new regulatory context on ESG, it will be critical for the market players to assess ESG risk exposure, but also to connect it with financial performance. This is precisely what Advantage GreenGate has been working on for the last five years. As part of PwC’s ESG service offering, we felt that this was a great opportunity to collaborate with them to widen our sources of ESG risk assessment and make our clients benefit from their experience."
François Génaux, Advisory Leader at PwC Luxembourg said:
"In recent years, sustainability has gained traction and is increasingly seen as a necessity, and no longer as a trend, something that PwC clearly recognises. When looking at sustainability within the context of the financial services industry, PwC can help investors and companies navigate through the “Sustainable Finance maze” and most importantly turn the challenge into a business opportunity. We believe that with this new relationship we are strengthening our ESG service offering to PwC clients and taking another step in the right direction of Sustainable Finance."
Francesco Confuorti, CEO, Advantage GreenGate, comments:
"The joined business relationship of Advantage and PwC is a positive development as it enhances the opportunities and benefits for the financial community in helping firms and funds adjust to the definition of financial and non-financial indicators for compliance, risk management and investment. This supports all kinds of participants as it guides them to be attentive and assertive in their path to achieving sustainable investment goals which is beneficial to their investors, the community and the environment overall. Advantage GreenGate has developed a proprietary scoring algorithm based on a statistically robust, highly correlated combination of relevant ESG and financial indicators of company strength, credit quality and probability of default and will apply it to the analysis of funds and companies."
Notes to editors:
About Advantage GreenGate
Advantage GreenGate provides companies with specialized consulting services to strengthen the environmental and social sustainability profile, through the identification of the best technological and organizational solutions, the measurement of ESG impacts, and the Life Cycle Assessment of the product. Advantage GreenGate has elaborated scoring algorithms and develops its own methodologies for sustainability assessment on listed companies and SMEs, based on financial data, ESG (Environmental, Social, Governance) data and other information that qualify the sustainable profile of a company or a group. Advantage GreenGate applies the scoring methodologies to determine the degree of sustainability of funds or portfolios of financial instruments, and carries out comparative analyses by market, sector or geographical area. Advantage GreenGate has developed the Advantage Omega Score as a synthetic indicator of the degree of sustainability of an issuer or financial entity. Advantage GreenGate offers specialized advisory on sustainability, green economy to companies and institutions evaluating their own sustainability profile, and that of their investment portfolios. Advantage GreenGate carries out studies on the effects, risks and opportunities related to the adoption of higher sustainability standards, in step with the requirements of the legislation.
Visit us at www.advantagegreengate.com
1. PwC Luxembourg (www.pwc.lu) is the largest professional services firm in Luxembourg with over 2,800 people employed from 77 different countries. PwC Luxembourg provides audit, tax and advisory services including management consulting, transaction, financing and regulatory advice. The firm provides advice to a wide variety of clients from local and middle market entrepreneurs to large multinational companies operating from Luxembourg and the Greater Region. The firm helps its clients create the value they are looking for by contributing to the smooth operation of the capital markets and providing advice through an industry-focused approach.
2. The PwC global network is the largest provider of professional services in the audit, tax and management consultancy sectors. We are a network of independent firms based in 155 countries and employing over 284,000 people. Talk to us about your concerns and find out more by visiting us at www.pwc.com and www.pwc.lu.
Communications Senior Manager, PwC Luxembourg
Tel: +352 49 48 48 3582