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The “S” Impact For Asset Managers ESG Considerations

Environmental, social and governance (ESG) factors continue to grow in importance for Asset Managers, who are under both direct risk (climate-related disasters impacting commodities and global economies) and indirect risk (changing consumer preferences and increasing scrutiny and pressure by governments and regulators). 

Investment managers have the important role of guiding companies to invest in a more sustainable future, not only in the best interest of the planet, but also for savers and investors looking for long-term returns on their investments.

With the outbreak of the Coronavirus, attention may have been diverted away from the drive towards ESG-focused investing, but as the world begins to manage the pandemic, ESG priorities are emerging once more for both investment firms internally and those firms seeking investment.   

As the “S” in ESG and social data becomes more available and granular, so comes into focus the topic of Human Capital Management, and increased attention on Employee turnover, Labour practices & skills development, and Diversity & Inclusion, and how they impact on companies bottom line – especially given that labour costs can account for as much as 70% of business costs. The pandemic has put a spotlight on employee welfare, it has been reported that investors are planning to press companies for greater transparency on human capital policies and practices, be that living wages, work-life balance, or career development, and those investment firms will need to have their own ESG strategies for credibility.

Hiring strategies can have a big impact on staff attrition rates and the diversity of a firm. As specialist head-hunters we use a research-based approach to identify and develop extensive networks of Compliance, Financial Crime, Risk, and Legal professionals. We target the whole market to identify and headhunt diverse talent – 83% of candidates that are shortlisted by Danos Associates are from minority groups. By retaining the best diverse talent, our clients reduce staff turnover and related attrition costs, increase their business performance, and positively impact their ESG. 

Ed Wacher is a leading head-hunter for Compliance professionals within Asset and Wealth Management focusing on mid to senior level appointments. Having worked in the industry for over 12 years his network is extensive and has a proven track record of delivering assignments in a thorough but time sensitive manner.

If you are looking to hire, please reach out to Ed, who can share his market knowledge and identify the best talent for your firm.

Ed Wacher, Associate Partner
Tel: +44 (0) 20 3889 5756