Case Study

ESG factors within financial advisory

How to include the sustainability theme among the investment stories within the financial advisory service model, offering investment products and dedicated portfolios to Private Bankers and end customers.

The project and the new dimensions of sustainability

The client is one of the preeminent Italian private bank, specialised on wealth management advisory services with an asset under management greater than 70 billion Euros.

The service model and the consulting platform, previously characterized by purely financial views and analyses, have been enriched with information on environmental, social and governance (ESG) factors, in both terms of single product and portfolio. In this way, a different interpretation was provided to the Private Banker in the advisory process with the client.

During the research phase of financial products, the filters and selection criteria were enriched with the new dimensions of sustainability, so as to be able to select one or more instruments in a targeted and personalized manner.

Results achieved and potential enablers - Integration into the advisory process

The revision of the service model was obviously accompanied by the modification of the tools available to the Private Bankers.

The financial information of each product was integrated with sustainability data, with the completely redesigned product sheet (for example, synthetic ESG score, sustainability objectives compatible with the management strategy, impacts of the instrument on water consumption and CO2 with practical examples such as the number of showers or Rome-Milan trips, ...).

Portfolio analysis

The portfolio analysis was also enriched with sustainability criteria. It is possible to assess the exposure of the portfolio in sustainable products, the distribution of the ESG rating of the products that compose it and the degree of coverage with respect to the customer's sustainability objectives.

Sustainability optimisation

After the assessment of the client's portfolio and the possible comparison with sustainable guided portfolios, the Private Banker also has the possibility of optimizing the degree of sustainability of the client's real portfolio (for example by maximizing the synthetic score or single objectives), finding at the same time ethical and financially efficient investment solutions.

Product and portfolio reports

The product and portfolio reports have also been rethought with the contents present on the platform, so as to be able to deliver them to the customer before or after the advisory session and to convey commercial and educational contents in this way.

Service models

The service model and tools available to the Private Banker have been integrated with the sustainability factors in every step of the advisory process, from product research and screening to portfolio analysis and optimization up to the delivery of the report. Only in this way is it possible to offer added value to the Banker and its customers.