Capgemini-财富管理公司可以重新点燃投资者日益减弱的ESG热情-通过先进的数据分析预测高净值的个人信息（英）

RESEARCHINSTITUTE

WEALTHMANAGERSCAN

REIGNITEINVESTORS'

WANINGESGENTHUSIASM

ANTICIPATEHIGH-NET-WORTHINDIVIDUAL

SENTIMENTSWITHADVANCEDDATAANALYTICS

Wealthmanagerscanreigniteinvestors’waningESGenthusiasm

3

Introduction

Areinvestorsmaintainingcommitmentstosustainabilityinlightofrecenteconomicvolatility?Ourresearch,

conversationswith,andanalysisofHigh-Net-Worth

Individuals(HNWIs)indicatethatfinancialinsecurityand

alackofconsistencyandtransparencyinenvironmental,

social,andgovernance(ESG)reportingaffectcommitmenttosustainableinvesting.

Generallyspeaking,economicconditionscauseinvestorstopullback.Andwhentheylackvisibilityintosustainableinvestments(SIs),trustdwindles,causinghesitancyandskepticism.Inconsistentandnon-existentgovernment

regulationaroundESGassetsaddstothedilemma.

Whileimpactinvestments,orassetswithanESGangle,havebecomewealthmanagementfirmmainstays,theyfaceincreasingscrutiny.Thedebatearoundimpact

investingfurtherintensifiesassomeindividualswithdiscretionaryinvestableassetsofmorethanUSD

1millionreverttoMaslow’sfundamentalsandputpersonalsafetyabovegreeninvesting.Market

instability,macroeconomics,geopoliticaltension,andconcernaboutSIperformancehaveledsomeHNWIstosurvivalbehaviorsandretrenching–atleastfornow.

AccordingtoourfindingsfromCapgemini’s

WorldWealthReport2023

,thewealthandnumberof

2022globalHNWIsdeclinedforthefirsttimeinadecade.

Yet,manyremainemotionallyandfinanciallyinvestedinESG.

Balancingwealthpreservationwithsustainableinvesting

ESG-relatedinvestmentopportunitiesarewidelyavailable,

yetcautiousHNWIsprioritizewealthpreservation

andseekquantitativeevidenceofpositiveimpactand

financialreturn.Theywanttoavoidgreenwashingand

lookforinvestmenteducation,traceableESGscores,andharmonizedtrackingmethodology.

OurWorldWealthReportsurveyofHNWIsdetermined

thatmarketvolatilitydrovethe2022movetosafeguard

wealthoversustainability,with67%ofHNWIsnotingassetpreservationasacriticalobjectiveandonly41%rating

ESGimpactinvestmentasatoppriority.EuropeanHNWIswereevenlesskeen,withonly31%ratingESGimpact

investmentasurgent.

Whyshouldwealthmanagementfirmsandrelationshipmanagers(advisors)takenote?ESGinvestmentsare

essentialtoearth-savingeffortsandshowenormousfinancialpromiseworldwide.

Globally,

37%

ofallHNWIsand

47%

ofHNWIsyoungerthanage40saysustainability

impactstheirinvestmentdecisions.

Moreover,standardizedandtrustedESGscoring

mechanismscanboostportfolioresiliency.

Whilegreeninvestmentsmaynotbeasprofitableasoil

andgastoday,theyareontracktosurpassUSD53trillionby2025.1Thisfigurewouldmakeupoverone-thirdofall2025assetsundermanagement(AUM),projectedtoreachUSD140.5trillion.Theresult?AglobalESGdebtmarket

thattopsUSD15trillion.

Addressingdoubtswithdata

However,someinvestorsandbondissuersconsider

therisksofgreenwashingtobeasignificantthreat.

AccuratedataabouttheenvironmentalfootprintsofESGportfolios(ESGscores)willbevitaltoaddressconcerns

andencouragemoreinterestandaction.Yetaccuratedataiscontingentuponcorporatewillingnessandcommitmenttomeasure,reduce,anddisclosecarbondataatscale

andalignwithtargetssetbyinternationalguidelines

suchastheParisAgreement.Thisendeavorisnosmalltask.RelationshipmanagersservingHNWIclientssay

ESG-relatedduediligenceandenvironmentalimpact

measurementarecomplicated.Fortunately,technologysolutionscanprovideessentialsupport.Artificial

intelligence(AI)andmachinelearningcanoffercredibleanalysistomeasurereturnscorrectlyandprovideamoreaccurateviewofafund’sactualESGmerits.

4

Wealthmanagerscanreigniteinvestors’waningESGenthusiasm

Executivesummary

Capgeminipolledmorethan3,170HNWIs,3,200affluent-segmentinvestors,nearly100wealthmanagementmanagersandexecutives,and800relationshipmanagersacross71countriesaspartofthe

WorldWealthReport2023

.Thesurveyrevealedthelatestsectortrends,includingwaveringinvestorattitudesaboutESG.From2021to2022,HNWIsexpressedslightlymoreinterestinsustainabilityinvesting,upthreepointsfrom52%to55%.Then,in2023,thetrenddecreased

globallyto41%asworldwideeconomicuncertaintycontinued.InEurope,thedipwasmorepronounced,withonly31%ofrespondentsconsideringESGatoppriority.

Figure1.HNWIlikelihoodtorequestanESGscore

79%

79%79%

77%76%

64%63%

50%

70%

60%

54%

45%

30%

37%

71%

72%

62%

36%

JapanLatinAmericaNorthAmerica

Japan)

20222023

Source:CapgeminiResearchInstituteforFinancialServicesAnalysis,2023.

Asia-Pacific(excl.

Europe

2021

Global

However,manyHNWIsremaincommittedtoESG

investmentandgrowingtheirSIportfolios.Theyvalueastrategythatalignstheirinvestmentswiththeirvalues.

Capgemini’sanalysisisolatedglobalindicatorsoffutureESGinvestment.Forexample,63%ofHNWIsworldwidearelikelytorequesttheESGscoreofanassettheyareconsideringforinvestment.

RegionalgapsinESGinterestillustrateshiftingHNWIattitudesrequiringindividualizedwealthmanagementapproachesandsolutions.

Acrossgeographies,interestinESGinvestingwashighestwithintheunder-40agebracket,with47%describingESGobjectivesasapriority.InNorthAmerica,65%ofthose

under40ratedsustainabilityassignificantwhenselectingawealthmanagementfirmversus30%ofHNWIinvestorsinthe40-49agebracket.Thehigherthenetworthwealthband,thehighertheimportanceplacedonESG.Wefoundthat45%ofinvestorswithanetworthhigherthanUSD

30millionwereconcernedwithsustainability,versus37%intheUSD5-30millionbandand32%intheUSD1-5

millionband.

Wealthmanagerscanreigniteinvestors’waningESGenthusiasm

5

Wealthmanagerspositioned

todrivechange

Ourreporthighlightedtheshiftingroleofrelationship

managers(financialadvisors).Forexample,42%saidtheylackadequatedatatounderstandanasset’sESGimpact.

Thefindingssuggestthatmanyadvisorsfeeloutoftouchregardingthelatestsustainabilityinvestingtrends.A

lackoftrainingcanopenwealthfirmstovulnerability,asignoringregulationsandrequirementscanleadtoseverefinancialandreputationalrisks.

OurHNWIandrelationshipmanagersurveysidentifiedopportunitiesandriskswithinabuddingmarketlackingtransparencyandwell-definedstandards.ManywealthmanagementexecutivesaresuspiciousofESGscores

publishedbycorporationswithoutvisibilityintodatacollectionorprocessingpractices.

AsESGinvestingmatures,reliabledatawillbecrucialtoaddressinggapsinknowledgeandtrust.PairingdatasetswithAIandMLtoolswillrenderthemmoreuseful.

Wealthmanagersandtheirclientscangleanfinancial

andESGinsightsandcombinethemforaholisticviewofagivenassetorportfoliothatguidesmoreconfidentinvestmentdecisions.

6

Wealthmanagerscanreigniteinvestors’waningESGenthusiasm

HNWIsustainabilityperspectives

HNWIshavebeensomewhatcautiousaboutESGinvestinginrecentyears.In2021,oursurveyofglobalHNWIs

indicatedthatonlyhalfwerelikelytorequesttheESG

scoreofagivenasset.Comparethiswith64%globallyin2022and63%in2023.ThetrendwasmoreoptimisticintheUnitedStates,wherethelikelihoodofrequestinganESGscorerosefrom36%in2021to62%in2022and72%in2023inresponsetosomeHNWIs’desiretogivebacktosociety.

63%

ofglobalHNWIswilllikelyrequesttheESGscore

ofagivenassetin2023

BothHNWIsandwealthmanagementfirmshaveshownpersistentinterestinESGassets.InCapgemini’s2023

surveyofHNWIs,40%saidtheirreturnsfromESG-relatedandnon-ESGassetswerecomparable.Further,41%saidESGinvestmentwasatoppriority

Economicuncertainty

contributestoESGambiguity

However,inthefaceofongoingmarketvolatility,

HNWIsworldwideexperienceda3.6%declineinwealthin2022,thesteepestinadecade.Andintimesof

economicdifficulty,investmentprioritiesoftenshifttowealthpreservation.

TheGlobalHeadoftheCapgeminiResearchInstituteforFinancialServices,EliasGhanem,describedthepivotin

HNWI’sappetiteforsustainabilityin2022’sSustainability,Technology,andFinance:RethinkingHowMarketsIntegrateESG.2ThroughthelensofMaslow’shierarchyofneeds,hesaidthatonceindividualsmeettheiressentialneedsfor

food,cleanair,water,andfinancialsecurity,theyshifttheirprioritiestomeetcorevaluessuchasself-actualization.

TheCOVID-19pandemichelpedputsustainabilityattheforefrontoftheworld’scollectivepsyche,especiallyfor

youngergenerations.Our2022surveyfoundthatHNWIswereopentoinvestingbasedontheirethicalvalues.

However,theunpredictableeconomicclimatetemporarilydeprioritizedself-actualizationinitiatives,whichmay

includesustainableinvesting.

YetHNWIscontinuetosupportESG—inwords,ifnotactions.Byandlarge,theseinvestorsacknowledgetheimportanceandstrongpotentialofESG-relatedassets.

AccordingtoaMay2023reportfromLondon-based

analyticsfirmGlobalData,HNWinvestorsworldwide

allocateanaverageof22.1%oftheirfinancialassetstoESGinvestmentproducts.And67%ofwealthmanagerspolledsaidtheyexpecttheproportionoffinancialclientassetsallocatedtoESGinvestmentstoincreaseoverthenext12months–1%saidtheyexpectadecrease.3

HNWIsremaininterestedinESGinvestments,but

skepticismandmistrustpreventmanyfrominvesting

ingreenandsocialimpactfunds,accordingtothethirdeditionoftheSaltusWealthIndex,whichsurveyedmorethan1,000peopleintheUnitedKingdomwithinvestableassetsofmorethanGBP250,000(USD321,344)and

foundthatthevastmajority(80%)seeclimatechange

asapriority.Andwhileconcernsaboutthelevelof

returnsgeneratedfromESGremainabarrier,cynicism

andmistrustwerementionedastopreasonsnottoholdESGinvestments.Saltusdeterminedthatdespite44%ofHNWIsinvestinginESG,skepticismisrisingaroundtherobustnessandlegitimacyofgreenandsocialimpact

funds.4

ThenumbersinCapgemini’sreporttelladiverseregionalstory.Forexample,56%ofHNWIsinNorthAmericanamed

ESGimpactacriticalconcern.Incomparison,only19%

ofHNWIsinJapanwerelikelytoconsiderenvironmentalimpactinmoneymanagementquestions.Thelow

interestreflectsthecountry’scomplicatedrelationshipwithESG.Ontheonehand,Japanhasbeenhithardbynaturaldisasterssuchasfloodsandrisingtemperatures,underliningtheneedforclimateaction.Conversely,thecountry’srelianceonconventionalformsofenergy,suchascoal,limitsitsabilitytocutcarbonemissions.5

Wealthmanagerscanreigniteinvestors’waningESGenthusiasm

7

QuestiontoHNWIs:HowimportantareESG/sustainability

objectiveswhenmanagingyourwealth?

Region

Preservingwealth

Growingwealth

Donatingwealth

Wealthtransfer

ESGimpact

Asia-Pacific

(excludingJapan)

71%

73%

36%

54%

47%

Europe

60%

54%

24%

42%

31%

Japan

40%

35%

11%

25%

19%

LatinAmerica

82%

85%

31%

61%

49%

NorthAmerica

82%

78%

51%

69%

56%

World

67%

63%

34%

51%

41%

Source:CapgeminiWorldWealthReport2023,SurveyofHNWIs,Q12023.

WealthBand

Global

Asia-Pacific

Europe

Japan

LatinAmerica

NorthAmerica

USD1million–USD5million

32%

36%

37%

5%

37%

38%

USD5million–USD30million

37%

44%

28%

21%

43%

48%

USD30+million

45%

52%

33%

22%

55%

62%

Source:CapgeminiWorldWealthReport2023,SurveyofHNWIs,Q12023.

Notably,ultra-high-net-worthindividuals(UHNWIs)–withUSD30millionormoretoinvest–aremostconcerned

withsustainability.Oursurveyfoundthat45%ofUHNWIsviewESGasessentialintheirwealthmanagement

decisions.ThispercentagerosewhenweisolatedthoseinNorthAmerica,where62%indicatedESGwasvital.

ThesurveyresultisconsistentwiththeearlierpointaboutNorthAmericansgenerallybeingmostcommittedtoESG,anditheldacrossallwealthbands.Forexample,38%of

NorthAmericanswithintheUSD1milliontoUSD5millionwealthbandsaytheyareinterestedinESGinvesting.In

LatinAmericaandEurope,thoseinthisbandfollowat37%each,followedby36%ofHNWIsintheAsia-Pacific(excludingJapan).HNWIsinJapantrailed,withonly5%sayingESGiscriticaltotheirinvestmentdecisions.

AnewgenerationofESGinvestors

Globally,ageisastrongindicatorofHNWIinvolvement

inESGinvestment.Investorsunder40aremostlikelyto

valuesustainability;47%ofthisgroupnamedESGacriticalfactorinwealthmanagement.

8

Wealthmanagerscanreigniteinvestors’waningESGenthusiasm

47%

ofHNWIsunder40sayESGisanimportant

factorinwealthmanagement

ESGsupportamongmillennialsmakessense.They

grewupwithclimatechangeissuesandunderstandthe

potentialoftechnologysolutions.Further,weknowfrompsychologicalinsightsthathigh-wealthindividualsareinapositiontogivebacktosociety–broadlyandmeaningfully–becausetheyarenotworriedaboutwhethertheycan

satisfytheiressentialneeds.

AnticipatingHNWIdemandsiscriticalforfinancialinstitutions

Inthepastyear,HNWIshaveprioritizedwealth

preservation,andfearofarecessionpushedsomeoftheseinvestorstowithdrawfromimpactinvestments.Forexample,equityfundswithanESGtiltsuffered

asignificantlossofinvestorsinQ22023,dragging

thesectorintoarareH1netoutflow.6Economicand

regulatoryworriesinEuropedroveoutflows,accordingtoanalysts.

Alsoproblematicwereconcernsconnectedtoananti-ESGbacklashintheUnitedStates,wherefundssawtheirfifthconsecutivequarterofnetoutflows,accordingtoRefinitivLipperdataonthesustainableinvestmentindustryforthefirsthalfof2023.Conversely,thedatashowedthatsalesofgreenbonds–debtcompaniessayisringfencedfor

environmentallyfriendlyprojects–talliedback-to-backrecordquartersin2023.Theissuanceofsustainability-

linkeddebtandsocialbondswasstrongbutbelowrecordlevels.7

ThenumberspaintacomplexpictureofHNWIs’

motivation.WhilethereisstillmomentumbehindESGinvestment,wealthmanagersmustmeetthatinterestwithopportunitiesthataddressincreasingdemandsfortransparency.

Decipheringthedata

Themessagefromoursurveyisclear.Acrosstheplanet,

significant(andever-increasing)numbersofHNWIsare

askingforreliable,traceableESGdata.Theyseekassets

withstrongESGscoresandcarbonfootprintsalignedwithcorporateornationalemissionsregulationsandtargets.Andthedatamustalsobecomprehensive.HNWIswant

tomakeinformeddecisionsandareturningtowealthmanagersforwide-ranginginformationabouttheESGimpactoftheirassets.

Legislativecontradictions

Conflictinggovernmentalpoliciescandiscouragemore

widespreadESGinvestment.IntheUnitedStates,

whereinvestorsincreasinglyembraceESG,disparate

sustainabilityregulationsareevolving.InJune2023,aUScongressmanintroducedlegislationtargetingESGfactorsinretirementplaninvestments.ThebillproposeschangestotheEmployeeRetirementIncomeSecurityAct,which

regulatesvoluntarilyestablishedretirementinprivate

industry,andtheInvestmentAdvisersActof1940,whichregulatesinvestmentadvisers.8TheproposedbillopposestheFreedomtoInvestinaSustainableFutureActthat

wouldgiveworkplaceretirementplanstheautonomytoconsiderESGfactorsintheirinvestmentdecisionsorofferESGinvestmentoptions.9Thelegislationremainedunderreviewasweassembledthispaper.

ThedivisiveESGregulatoryenvironmentintheUnited

StatescontrastswithEuropeaninvestors’andlawmakers’

moreunifiedviews.Ageneralaccordhasenabled

fasterprogressandlessriskyinvestmentsforEuropeanHNWIs.TheEUmandatesESGdisclosurerequirementsforrelationshipmanagers.10AndinAsia,regulators

focusmainlyoninvestorprotectionandgreenwashing.Singaporehasrolledoutguidelinestotakeeffectin

January2024tohelpreducegreenwashingrisksandenableretailinvestorstomoreclearlyunderstandESGfunds.11

Aclimateofcontroversy

OppositiontotheFreedomtoInvestinaSustainable

FutureActiscauseforconcernamongsomeUSHNWIs

consideringESG-relatedassets.Whygetbehindaproductorservicethatmightbebannedorrestricted?

TheattitudesofUSbusinessleaders,includingchief

financialofficersfromFortune500companies,also

reflectuncertainty.AccordingtoaQ32022CNBCsurvey,manyCFOsopposetheUSSecuritiesandExchange

Commission’sproposedrequirementsforemissions

andclimatedisclosure.AquarteroftherespondentssupportedtheSEC’smeasures,but35%voicedstrongopposition.12TheMarch2022SECproposalrequiresallpubliclylistedcompaniestodisclosecarbonemissions,climate-relatedrisk,andtheirplansforreducingandmitigatingemissions.Thefirstmandatoryfilingsare

scheduledfor2024(using2023data).13

Wealthmanagerscanreigniteinvestors’waningESGenthusiasm

9

Thewealthmanagementfirm

dilemma

Detaileddatapromises

insightsintoESGinvesting

ClarifyingHNWIconcernsisthefirststep.Thenextis

toaddressthem.Forfinancialinstitutionstofullyserve

investors,theymustarmthemselveswithcomplete

andtrustworthydatabecauseclients’lackoftrustin

companies’ESGreportingisasignificantobstacletomorewidespreadESGinvesting.

AstudyconductedbyCapgeminiandFrenchstartupBLOOM,incollaborationwithsoftwarecompany

DassaultSystèmes,foundthatmanyindividuals,

regardlessofnetworth,aresuspiciousofcorporations’

sustainabilityclaims.14ThestudyexaminedEnglish-

languageconversationsaroundclimateonsocialmedia

overeightmonthsin2022.Usingasophisticatedalgorithmbasedonnaturallanguageprocessingmodels,itsought

touncoverbusinessopportunitiestodriveclimateactionbyconsideringindividuals’keyconcernsandpriorities.Byanalyzingabout14millionwrittenpostsandcommentsonplatformsincludingTwitter,Facebook,andYouTube,the

studyfoundthatindividualsexpectcompaniestodrive

climateactionbutseethroughoverlyoptimisticmessagesaroundnon-transformativeorunrealisticsolutions.In

otherwords,opportunitiesexistfororganizationstoofferrealreasonsforhope.

Theculprit:alackofclarity

Theglobalmistrustisdue,inpart,toalackofunifiedinternationalESGreportingstandards.Currently,

corporationsengagedinESGreportingdonotevennecessarilymeasurethesamesustainabilitykey

performanceindicators.Theyalsolacktransparencyintheproceduresandanalysistheyperformontheirsustainabilitydata.

Thislackofunityandstraightforwardreportingleads

toconfusionandmistrust.Asaresult,evenasinvestors

committosustainabilityprinciplesintheory,theymaynotbackupthoseconvictionswithcapital.

ClientswanttoinvestinESGassetswhentheycantrustthedatatheyhavereceivedandonlywhenitshows

profitabilityandatangiblepositiveimpact.

However,thelackofunityinreportingmechanismsisconcerning.Sohowcanacorporationeffectivelysubstantiatesustainabilitycredentialswhenitusesdifferentmetricsthanitscompetitors?

OneattemptataglobalstandardistheUnitedNationsGlobalCompact,whichbusinessescanjointofilean

annualreportthatdemonstratestheiradherencetotheUN’stenprinciplesonhumanrights,laborpractices,

theenvironment,andanti-corruptionmeasures.15

CompaniescanalsoreportontheirprogresstowardtheUN’sSustainableDevelopmentGoalsthroughaplatformthatblendstheprinciplesoftheGlobalCompactandtheGlobalReportingInitiative(GRI)Standards.16

Feedinginterestwithinformation

ManywealthmanagementexecutivessupportESG

investing;78%ofthosewesurveyedsaidtheirfirmsholdESG-linkedassets.Anadditional9%oftheseexecutivesintendedtodevelopmoreESG-relatedinvestmentoffersinthefuture.

Savvywealthmanagersknowthatthemostrobust

portfolioswillbethosethathaveanticipatedand

preparedfortherisksassociatedwithclimateimpacts.Investinginlong-termgrowthandsustainableassetsisasurefirewaytocreatearesilientportfoliothatwillgeneratebetterlong-termreturns.

Yet,despitethisawareness,manywealthmanagement

firmsdonotmakeESGdataanalysisandtraceabilitytheirprimeconcern.

StandardizingESG

investmentsupport

Credibleandstandardizedperformancemeasurementswouldserveinvestors,regulators,financialinstitutions,andotherESGassetstakeholders.Accesstosuch

reliabledatawouldpermitwealthmanagementfirmstoguaranteethatagiveninvestmentalignswiththeirESGbestpractices.

However,manywealthmanagementfirmsneedsupportinprovidingtheseinsightsinatraceablewayforallassets.

10

Wealthmanagerscanreigniteinvestors’waningESGenthusiasm

OfrelationshipmanagerssurveyedbyCapgemini,40%saidtheyrequiredmoredatatounderstandtheESG

impactsofinvestments.Furthermore,nearlyhalf

indicatedtheyneededsuchESGdatabeforeeffectivelyengagingwithHNWIs.

40%

ofrelationshipmanagerssaidtheyneedmoredatatounderstandESGimpact

Theproblemisnotlimitedtowealthmanagement

firms.Theglobalframeworkforproducing,distributing,andconsumingESG-relateddataisnewandrelatively

underdeveloped.Whencorporationsofferfulldata

collectiontransparencyacrosstheESGdatavaluechain,investorswilleventuallytrustESGscoresandreports.

Untilthen,reportingbywealthmanagementfirmswillremainreactive,relyingonperformanceinformationtopromoteESGfunds.

Alackofglobalstandardshindersbanksandwealthmanagers

Addressingchallengeslinkedwiththecomplexityand

magnitudeofESGinvestmentuncertaintyrequiresvarioussolutionsdeployedintandem.Capgemini’sexecutive

surveyaskedrespondentstosharetheactionstheirfirmsarecurrentlytakingtoimproveESGstrategy:

•Globally,52%collectandanalyzeESGdata;thisfigureishighestinEurope,at68%,andlowestintheAsia-Pacificregion,at24%.

•Worldwide,61%haveembeddedESGasafactoracrosstheirinvestmentportfolios;theUnitedStatesleadsthistrendat69%.

•59%ofexecutivesreporteducatingclientsonESG.

•Meanwhile,only31%saytheyaremakingESG-relatedassetstraceable.

52%

ofwealthmanagementfirmscollectandanalyzeESGdata

Whilecompaniespromisetotakestepstowardinternal

ESGpolicies,thearrayofapproachesfurtherspeakstothe

generallackofglobalstandards.Thesituationintroduces

riskforthefinancialsector,wherestandardsareparamount.

Informationinspiresinnovation

Knowledgeispower;accessingmoreESGdatawillhelp

addressthisrisk.Insurers,forinstance,areadoptinga

climateresiliencymodelthatbalancesriskpreventionwithriskmanagement.Capgeminihelpedbuildaframework

fortheseinsurersbyanalyzingcommunicationsintheinsurancesectorsince2015.

Capgemini’s

WorldPropertyandCasualtyInsurance

Report2022

encouragesinsurerstodevelopinnovative

riskpreventionandtransfersolutions.Ratherthanwaitingforpolicyholderstorespondtoperceivedrisks,actuariescanspurclientstoacttoday.TheCapgeminiframework

encouragesinsurerstorethinkriskassessmentmodels,deployriskpreventionatscale,anddrivesustainable

investmentandunderwritingstrategies—beyond

exclusionsanddivestments—tocreatearesilient

ecosystem.ThereportidentifiedResilienceChampionfirmcharacteristics.Forexample,82%ofriskchampionshadachiefsustainabilityofficerorequivalent,andnearly60%

wereintheadvancedstageofusingMLforpricing.

Yet,another2023

Capgeminireport

foundthatduetoeconomicdownturnconcerns,only33%ofbusinessesgloballyplantoincreaseinvestmentinsustainability.

Vastdataanalysisisthebasisofaninsurer’snewbusinessmodel.Thesameappliestowealthmanagementfirms

thatselectstrategicpartnerswithdataexpertise.

TailorconversationswithHNWIs

Wealthmanagementfirmshandlinghighcapitalinflow

mustkeepabreastofduediligencerequirementstostayinbusiness.InthecaseofESGinvestment,remaining

updatedonsustainabilityregulationswillrequirereliable,trustworthydataaboutESG-linkedassets.

Overvaluationsandincreasedfinancialriskmayensueifawealthmanagementfirmcannotcollect,analyzeandaccuratelyreportthisinformationtoclients.Wealth

firmscanpartnerwithdataanalysisspecialiststostayuptodate.

AstherearenoglobalstandardsforsharingESG

information,manyHNWIslackconfidenceintheESG

scorespublishedbycompaniestheymightinvestin.

Therefore,wealthmanagementfirmswithreliabledatacanbeinvaluabletoinvestors.

Wealthmanagerscanreigniteinvestors’waningESGenthusiasm

11

Newapproachesforbanksandwealthmanagementfirms

StartwithinnovativeESG

data-capturingmethods

HNWIsareonlybeginningtoventureintotheworldof

ESGinvesting.Astheirinterestgrows,theywillseek

insightintothefulldepthandbreadthofsustainable

investingopportunities.Theywillalsodemandcustomizedrecommendationsandportfolios.

Asaresult,banksandwealthfirmsmustanticipate

clientneeds.Inpreparation,firmscanpartnerwithdata

collectionandanalysisexpertsfortechnicalsupport,

includinginsightsintotheimpactofESGinvestmentsandreturnsgenerated.Oncethisdataiscollected,AIandMLtoolscanparseandleverageinformationthroughinsights.

HSBCMOBILIZESAIINSUPPORTOFESG

Somemajorbankshavealreadybeguntocollaboratewithdataproviderstothisend.Inthefirstquarter

of2022,HSBCmadeaUSD100millionanchorinvestmentintoBreakthroughEnergyCatalyst,aclimate

technologyinvestmentfundfoundedbyBillGatesthatdeploysprivateandpubliccapitaltopromotenewtechnologiesinpursuitof2050net-zerogoals.CatalystisaninitiativewithintheBreakthroughEnergy

network,whichhelpsdecarbonizehigh-carbonsectorsviainvestmentsindirectaircapture,cleanhydrogen,long-durationenergystorage,andsustainableaviationfuel.17

In2021HSBCinvestedinMioTech,aHongKong-basedAIcompanythatprovidessustainabilitydataand

technology.18