A Sustainable landscape at Titan Asset Management
The Titan Asset Management Sustainable Investment policy is always evolving, and keeping up with our client narrative is more important than ever. We rely on third-party data providers to shed light on an increasingly murky landscape, and so we are pleased to share that Util will be joining Morningstar Sustainalytics and MSCI as one of our Sustainability data providers. Util uses AI to quantify a company’s impact, they cover over 50,000 companies, analyse over 120 million peer-reviewed journals, and measure these against the UN’s 17 Sustainable Development Goals as well as over 2,000 other sustainability concepts. When Util’s AI deep dives into a company’s impact,it means Titan Asset Management can see the real positive and negative exposure to key sustainability concepts. A new age of financial AI.
Titan Asset Management currently uses Util’s datafor the Titan Sustainable MPS reporting purposes. While Util measures a company’s real-world impact in a transparent and concise way, we enable clients to realise their non-financial narratives easily and simply. Util now joins the UN’s Principles of Responsible Investment, UN’s Sustainable Development Goals, MSCI AA rating, and UN Global Compact as the drivers of the Titan Asset Management ESG policy. Implemented by our Sustainability Lead and Portfolio Manager, James Peel, Util’s data enhances Titan Asset Management’s new MPS offering. The partnership allows us to give clients the opportunity to benefit from Util’s data and by combining Titan Asset Management’s sustainability policy with other robust, heavyweight environmental entities, we ensure that the Firm’s ESG policy is truly holistic, broad, intersectional, integrated, and risk-adjusted.
So, who is Util and what do they do?
Who is Util?
Util is the only sustainability data provider that uses AI across peer-reviewed journals to objectively quantify a company’s impact, giving investors the evidence they need to deliver on their sustainable investing goals.
Util’s proprietary AI engine gathers and maps sustainability evidence at scale, and can show the exact sentence that led to a company’s impact score across a specific framework, including the 17 UN Sustainable Development Goals (SDGs). Their data helps investors capture a company’s potential future value offering, and better understand its risk profile in order to support portfolio construction, client reporting, fund creation, and more.
Unlike some traditional ESG data providers that base their scores on subjective or company-reported disclosures, Util bases its evaluations on objective research and quantifiable evidence, shedding light on how a company affects society and the environment at the product level, yielding deeper insights into company exposure.
How it works
A proprietary AI-driven evidence engine maps a company’s products to more than 2,000 sustainability concepts using peer-reviewed academic research as evidence. Those concepts are then mapped to known sustainability frameworks, including the UN-SDGs. The result is an objective data set that shows, with evidence, a company’s positive and negative impact on the world.
How does Util add value to our Sustainable MPS?
1. Util helps investors grow and retain clients by incorporating objective, evidence-based sustainability data into their portfolios – enabling them to exceed client demand and avoid risk, without impacting performance.
2. Util helps investors to build custom portfolios, capitalise on a company’s potential future value offering, and better understand its risk profile.
3. Util provides investors with evidence and transparency into the varied impacts of their holdings, can pinpoint the precise issues on which they need to engage, and can build portfolios targeting specific metrics.
“We are always on the lookout for ways we can improve our sustainable investment proposition, and data is a big part of that. Client narrative is important to us, our clients have objectives that aren’t strictly financial. Either they share our belief that adding more non-financial data to traditional risk management can improve the investment process, or they want their savings to be directed towards investments that are making the world a slightly better place.
Sustainability Lead – James Peel, CFA
Utilising AI to collect data is exciting, it gives our Sustainable MPS an edge; we’re acknowledging the future of financial technology. For these non-financial objectives, Util’s data has been an excellent tool, specifically to gauge real-world outcomes clearly and concisely. It bolsters the narrative side of our sustainable investment proposition. We believe clients will appreciate the added colour about real world outcomes that the Util data provides.”
James Peel is Titan Asset Management’s Portfolio Manager and Sustainability Lead, and is taking part in a webinar with Util on 11th May 2023. To sign up to the webinar please follow this link: event registration
To read more about Util and what they do visit their website here: https://www.util.co/
To see more on our ESG and Sustainable investment policy, click here: https://titanam.co.uk/esg/
