Envestnet | PMC Launches Enhanced ESG Due Diligence Framework

CHICAGO, April 22, 2021 /PRNewswire/ -- Envestnet, Inc. ENV announces that Envestnet | PMC (PMC) has launched an environmental, social, and governance (ESG) due diligence program to enhance its existing proprietary due diligence framework—and enable its research team to hold more meaningful conversations with asset managers throughout the Envestnet ecosystem about ESG investment processes and strategies. This additional level of research and due diligence from PMC is ultimately designed to help financial advisors and their clients make well-informed ESG investment decisions.

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"With increased activity and interest in ESG, advisors and investors can be overwhelmed with potential ESG investment opportunities," said Kiley Miller, Associate Portfolio Manager at Envestnet | PMC. "In order to give advisors and their clients a roadmap for making ESG investment decisions, we have developed a multi-factor ESG due diligence process for evaluating ESG strategies available on the Envestnet platform. We examine each manager to identify their level of commitment to ESG integration. These insights will equip advisors with better information on ESG investment strategies, which they can use to cut through the excess noise as they effectively navigate the growing ESG fund landscape."

Based on interactions and questionnaires from ESG managers, as part of the ESG due diligence framework, PMC's research team analyzes firm-level ESG policies, ESG integration in the investment process, reporting on impact, and engagement on ESG issues at equity and fixed-income managers across the Envestnet platform. Information on these four key areas is collected from managers through a questionnaire and ongoing conversations with investment teams. These insights are then evaluated and scored using specific, detailed criteria across ESG governance and policies, integration in the investment process, reporting, and engagement on ESG issues.

Investor interest in ESG strategies that seek to influence positive social change continues to rise. On the Envestnet platform, year-over-year investments in impact and ESG strategies were up 98% in 2019, and were up 81% in 2020—making ESG the fastest-growing segment of Envestnet's managed money universe. As of December 31, 2020, the Envestnet ecosystem included more than $20 billion in ESG assets under management or administration in over 335,000 client accounts, overseen by more than 17,000 advisors.

"The market's focus on ESG investment approaches is no passing fad. Investors will continue to place emphasis on strategies that allow them to make a positive social impact through investing," said Dana D'Auria, CFA, Co-Chief Investment Officer of Envestnet. "The seamless incorporation of customized, institutional-quality ESG and sustainable investment approaches into client portfolios is another benefit of the intelligent, connected financial life created by Envestnet's financial wellness ecosystem."

About Envestnet

Envestnet, Inc. ENV is transforming the way financial advice and wellness are delivered. Our mission is to empower advisors and financial service providers with innovative technology, solutions, and intelligence to make financial wellness a reality for everyone. Over 106,000 advisors across more than 5,100 companies—including 17 of the 20 largest U.S. banks, 47 of the 50 largest wealth management and brokerage firms, over 500 of the largest RIAs, and hundreds of FinTech companies—leverage the Envestnet platform to grow their businesses and client relationships.

For more information on Envestnet | PMC, please visit www.investpmc.com.

Nothing contained in this presentation is intended to constitute legal, tax, accounting, securities, or investment advice, nor an opinion regarding the appropriateness of any investment, nor a solicitation of any type. Advisors should always conduct their own research and due diligence on investment products and the product managers prior to offering or making a recommendation to a client.

Media Contact:

Dana Taormina
JConnelly for Envestnet
973.647.4626
envestnetpr@jconnelly.com 

SOURCE Envestnet, Inc.