Fondo Pensione Pegaso, the second-pillar pension scheme for employees of Italian utility companies, has adopted the ESG.IAMA index to assess asset managers’ ESG credentials in the manager selection process for its latest tender for bonds and multi-asset mandates.
ESG.IAMA (Identity Asset Manager Assessment), an index in the form of questionnaire developed by ET.Group, measures whether the approach of asset managers is consistent with ESG goals set up internally, in addition to their investment products.
The index takes into account key aspects including asset managers’ governance, corporate culture, and their commitment towards sustainability goals.
Fondo Pegaso is looking to select four asset managers for active bond aggregate and semi-active multi-asset strategies.
Andrea Mariani, the fund’s director, said: “We have decided to adopt ESG.IAMA as part of the asset manager selection [process] in order to better understand the identity of the manager from a sustainability perspective.”
He added: “There is a widespread commitment of asset managers to integrate ESG aspects into investment processes, and therefore it becomes more difficult to understand the differences and characteristics [in terms of asset management]. We took the opportunity to leverage an existing, specific survey, without duplication of information.”
This year, 41 asset managers representing more than €22trn in total assets have tested their ESG credentials in a survey, compared with 23 last year, according to ET.Group.
The results remained unchanged year-on-year in 2023, with asset managers scoring, on average, 50.12 points this year, compared with 50.64 points in 2022.
ET.Group’s methodology includes an Integrated Governance Index (IGI) structured as a questionnaire for managers to analyse the progress made in terms of practices, processes and the governance culture of companies operating in the Italian market.
It also includes ESG ratings, risk-and-return performances, and analysis of thematic investigations conducted by the Bank of Italy, in addition to data on compliance with the Sustainable Finance Disclosures Regulation, EU Shareholder Rights Directive II, EU Taxonomy, and IOSCO’s Good Sustainable Finance Practices.