A new venture incubated by EDHEC Business School seeks to provide institutional investors with the ability to conduct their own analysis into ESG and climate characteristics and risks in their equity portfolios. Scientific Portfolio said its neutral, independent technology solution for portfolio analysis and construction would enable investors to take “full control” of their equity portfolios by accessing a comprehensive framework that combines financial risk and performance metrics with sustainability and climate considerations. “Among institutional asset owners and wealth managers, there is a growing need to assume full control of their investment policy and an exponential demand for customisation linked to the advent of ESG and low-carbon and sustainable investing,” said CEO Benjamin Herzog. “At the same time, asset managers and investment solutions providers lack comprehensive tools to nourish an informed dialogue with their clients.” According to a statement, the platform will analyse risk and performance using forward-looking insights, evaluate climate and sustainability impacts and identify trade-offs with competing financial objectives. I will also detect risk concentrations and assess factor exposures to enhance portfolio resilience, and incorporate climate risk into portfolio analysis, seamlessly integrating the insights of ESG datasets into traditional financial metrics. In addition, Scientific Portfolio will provide users with access to a knowledge centre to provide guidance through the portfolio analysis and construction process. “This aligns with Scientific Portfolio’s commitment to remaining connected with its academic roots and bridging the gap between investors and academia,” the firm said.
