Financial advisory service provider Envestnet announced the launch today by its portfolio consulting group Envestnet | PMC, of an ESG due diligence program, enhancing its existing due diligence framework with insights into ESG investment processes and strategies. The company stated that the new framework is ultimately designed to help financial advisors and their clients make well-informed ESG investment decisions.

Kiley Miller, Associate Portfolio Manager at Envestnet | PMC, said:

“With increased activity and interest in ESG, advisors and investors can be overwhelmed with potential ESG investment opportunities. In order to give advisors and their clients a roadmap for making ESG investment decisions, we have developed a multi-factor ESG due diligence process for evaluating ESG strategies available on the Envestnet platform. We examine each manager to identify their level of commitment to ESG integration. These insights will equip advisors with better information on ESG investment strategies, which they can use to cut through the excess noise as they effectively navigate the growing ESG fund landscape.”

Under the enhanced due diligence framework, PMC’s research team analyzes firm-level ESG policies, ESG integration in the investment process, reporting on impact, and engagement on ESG issues at equity and fixed-income managers across the Envestnet platform. These insights are then evaluated and scored using specific, detailed criteria across ESG governance and policies, integration in the investment process, reporting, and engagement on ESG issues.

Dana D’Auria, CFA, Co-Chief Investment Officer of Envestnet, said:

“The market’s focus on ESG investment approaches is no passing fad. Investors will continue to place emphasis on strategies that allow them to make a positive social impact through investing. The seamless incorporation of customized, institutional-quality ESG and sustainable investment approaches into client portfolios is another benefit of the intelligent, connected financial life created by Envestnet’s financial wellness ecosystem.”

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