Sustainability Framework Alignment
US Fixed Income Asset Manager
Client Overview
We partnered with a US-based fixed income fund manager with $6 billion AUM. The firm sought a practical, scalable way to respond to growing investor scrutiny and evolving global expectations on sustainable investment practices.
Objective
Danesmead Advisory was selected for our expertise in aligning managers with leading frameworks such as SFDR, TCFD, PRI, UNGC, and the ESG data Convergence Initiative. The client sought more than advisory support. They needed a partner who understood fixed income intricacies, regulatory developments and investor demands.
Key Actions
Identifying relevant frameworks
We began with a targeted review to identify which sustainability frameworks and regulatory regimes were most applicable to the client and their stakeholders. From this, we prioritised TCFD, PRI, SFDR, and the ILPA ESG DDQ - based on the firm’s investment strategy, geography and investor base.
Mapping for efficiency
Next, we conducted a comprehensive mapping exercise to compare and align these frameworks. This revealed core areas of overlap, which allowed us to build a cohesive and efficient data collection and reporting strategy. This approach reduced duplication and created a single point of integration across multiple disclosures.
Building fit-for-purpose processes
We then collaborated closely with the client’s investment team to design policies and procedures that were aligned with the selected frameworks. Our work was anchored in a detailed gap analysis and focused on building processes that were both robust and proportionate - ensuring practicality without compromise.
Results
The benefits of this integrated, forward-thinking approach were clear. They include:
PRI reporting success
Unlike many new signatories who struggle in their first reporting cycle, the client secured a 5-star rating out of the gate - thanks to comprehensive and aligned policy infrastructure.
TCFD alignment
The firm was able to respond promptly to TCFD-aligned investor requests, having already embedded climate-related risk and opportunity assessments into their investment processes.
SFDR efficiency
By repurposing data captured for other frameworks, SFDR reporting became significantly more efficient, with reduced burden and greater internal confidence.
Ongoing support
We continue to support the client on an outsourced basis, providing reporting assistance and delivering specialist input across ad hoc sustainability and regulatory projects.
Strategic advantage
This project exemplifies how sustainability, when embedded early and effectively, becomes a lever for operational efficiency, regulatory alignment and commercial advantage. With streamlined reporting and integrated frameworks, the client is now well-positioned for sustainable growth and continues to rely on us as a trusted partner across future regulatory cycles.