KPMG, a multinational professional services network with a member firm in Luxembourg, and the University of Cambridge Institute for Sustainability Leadership (CISL) have jointly developed an innovative digital solution to measure sustainable investment outcomes.
The Sustainable Investment Framework Navigator (SIFN), developed by KPMG in the Netherlands and in the Cayman Islands and CISL, provides asset managers with a greater degree of transparency on the environmental and social impacts of their investments.
Chrystelle Veeckmans, Head of Asset Management at KPMG Luxembourg, explained: “We, and our clients, have been waiting for this moment for many years. Measuring the ESG impact of funds just felt like walking through a thick fog. Finally, with this tool, I feel like we’re coming out of the mist and a fresh, clear day is emerging. The tool is practical and can be used right away: that’s what makes it so different from other initiatives out there. We’re proud to be announcing this truly important moment for asset management and know that Luxembourg will benefit from this work with the CISL. Working in this industry is really fascinating, together we can make an impact and contribute to a more inclusive and sustainable society”.
This software as a service (SaaS) tool can assess investment portfolios based on a common impact standard, enabling both asset managers and investors to make more informed sustainable choices with their investments. The SIFN is based on the Sustainable Investment Framework, developed by CISL in conjunction with the Investment Leaders Group (ILG), and is designed at measuring the real-world impact of an investment fund’s portfolio.
The SIFN comprises six impact themes which asset managers can use as proxies for the performance of their investments and their alignment with the United Nations Sustainable Development Goals (SDGs). The themes are: climate stability; recourse security; healthy ecosystems; basic needs; wellbeing; decent work.
Ravi Beegun, Chief Innovation Officer at KPMG Luxembourg, explained how innovation had enabled this development: “Data is at the very heart of this project. It’s a true example of how joining up the dots through innovative methodologies, data and technology can give a real-added value: not just to individuals or companies, but to whole industries and even society. This solution is pragmatic, easy-to-use and integrates well with current working practices - this is what data and technology can achieve when it’s working at their best. We’re truly proud to be a part of this wonderful initiative, a milestone on the journey to a more sustainable world”.
The ultimate goal is to assess all portfolios on a common basis to bring clarity for investment clients and beneficiaries. In doing so, it is expected to help to encourage the movement of capital towards more environmentally and socially sustainable investments and supports asset managers to disclose relevant data in a consistent way.
The SIFN is available now. Further information is available at home.kpmg/nl/SIFN.
