The ESG Report - Episode 44 - The Future of ESG with Trysha Daskam

Thomas Fox - Compliance Evangelist
Contact
Trysha Daskam has made appearances on many of my podcasts over the years; she comes to this week’s show to share her ESG expertise. Trysha holds the Managing Director and Head of ESG Strategy at Silver Regulatory Associates, a boutique consulting firm offering ESG services, compliance, regulatory services, and due diligence services. Today, she joins me to discuss the expectations for ESG significance and regulatory concerns moving into 2022. See more +
Trysha Daskam has made appearances on many of my podcasts over the years; she comes to this week’s show to share her ESG expertise. Trysha holds the Managing Director and Head of ESG Strategy at Silver Regulatory Associates, a boutique consulting firm offering ESG services, compliance, regulatory services, and due diligence services. Today, she joins me to discuss the expectations for ESG significance and regulatory concerns moving into 2022.

The Work of Silver Regulatory Associates

“We take a unique approach to ESG,” Trysha tells me. At Silver, they’re thinking about building ESG programs from the regulator’s perspective. By evaluating an investment manager through the lens of their investment strategy, Silver understands how ESG can be incorporated naturally, allowing the programs to thrive.

How Important is ESG Training?

There should be a focus on competency across regulatory firms, especially with increasing investment managers being on board with ESG responsibilities. Trysha has seen an uptick in clients requesting ESG training to understand the responsibilities of the different members of the firm, including investment professionals and compliance professionals. “It’s correct to think about your ESG program with the same cautiousness and prudence you would use for any other policy or procedure,” she states.

The Growth of ESG

The momentum of ESG in 2021 has influenced more and more organizations to align their company values with those of ESG voluntarily, and, as a result, financial services are starting to feel the pressure.

What to Expect, Moving Forward

Earlier in the year, Silver issued a report discussing the areas private investment fund managers should focus on in 2022. For Trysha, the key takeaways were:

1. Managers should prepare for enhanced ESG disclosure; most notably, introducing a climate disclosure regulation is expected in the near term.

2. Managers will likely be continually pressed to evidence the ESG-related claims they make in their policies and writings.

3. Firms will be required to articulate their approach to climate risk and adaptation; “Long gone are the days where managers run an investment strategy that doesn’t see climate as the most material risk to their process,” Trysha remarks.

Regulation and ESG Reporting in 2022

Trysha cites greenwashing as the core of every regulatory movement being seen today. Though the EU is the most vocal about this, the SEC has also stated that greenwashing is a major risk in the current marketplace. Where there is an opportunity to use language describing an approach to ESG, there needs to be auditing of whether or not it is authentic to what a manager is accomplishing.

DEI (Diversity, Equity, and Inclusion) is another important issue. Managers respond to DEI questions from their investor base on a more routine basis, and DEI-related questions have matured over time. Trysha believes that this will continue going into 2022, and there could be regulatory obligations around transparent reporting out of the SEC in the future.

Trysha and I also discuss the frustration surrounding the lack of international standards for framework and whether or not it will be addressed in 2022. Trysha thinks that some light is beginning to be shed on the evaluation and, ultimately, the development of these standards. See less -

Embed
Copy

Other MultiMedia by Thomas Fox - Compliance Evangelist

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Thomas Fox - Compliance Evangelist | Attorney Advertising

Written by:

Thomas Fox - Compliance Evangelist
Contact
more
less

Thomas Fox - Compliance Evangelist on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide