Engineer more sustainable portfolios and decisions

Tailor and optimise your ESG objectives and verify the outcome with factual reporting. Save time and simplify your workflow

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MORE IMPACT. LESS RISK

Elevate your ESG approach to the next level of sophistication

Because we harness factual, quantitative data, Smart ESG delivers more impact, with reduced tracking error

SMART ESG

The future of sustainable investing

Smart ESG uses our quantitative impact data to systematically select, weight, and rebalance portfolio holdings based on impact and ESG factors of your choice, in a risk-controlled framework

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THREE POWERFUL STEPS

Customise your ESG objectives & investment criteria, receive a custom model portfolio, and quantify ESG to your end-investors

1. Customise

Configure an extensive array of ESG, risk, and regulatory options, using factorised data

2. Optimise

Smart ESG simultaneously optimises multiple ESG and portfolio objectives with tracking error minimisation

3. Quantify

See your portfolio’s ESG impact using our fast & easy portfolio reporting via our platform – in both client-facing and regulatory formats

USE CASES

Redefine impact, your way

Break away from the constraints of conventional scores or indices. With Smart ESG, apply your organisation’s unique ESG objectives and screening criteria. Surpass industry benchmarks and revolutionise sustainable investing

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USE CASES

Why Smart ESG?

Create next-generation thematic funds

Smart ESG equips you with a suite of over 20 ESG and impact factors – including water, waste, carbon, gender equality and more – to calibrate your fund to your precise sustainability goals

Truly differentiated funds

Set benchmarks, manage tracking error, incorporate specific ESG factors, and apply sector or thematic screens.
With the ability to define target factors and monitor holdings’ business activities, as well as factor score deciles – you’re equipped to produce offerings that are uniquely different in the market

Minimise tracking error

The combination of our factor data and our portfolio engine purposefully built for ESG, results in the most efficient portfolios possible with minimal tracking error

One-click reporting

Interact with the data using our online analytics platform to explore the ESG impact of your newly created portfolio across 150+ empirical ESG metrics, and download a client-facing or regulatory report

Go beyond carbon

Carbon is just one of the ESG factors you can optimise your fund against – with over 20 customisable impact factors across E, S, G and regulatory indicators, you can create ESG strategies that will resonate with your target end investors

Risk management

Implement specific risk and impact parameters simultaneously

Differentiate your funds

Capitalise on ESG inflows by offering unique sustainable products with transparent ESG impact

inflow into ESG funds since you’ve been on this page

Custom index creation

This spider chart shows the SDG alignment of a Smart ESG custom global equity portfolio (blue line), compared to an existing ESG ETF (green line) with the same level of tracking error. Positions further away from the centre indicate higher SDG alignment

REVOLUTIONARY

What is Smart ESG?

Go beyond the efficient frontier

Because we use our own industry-leading factorised data, specifically built for ESG, Smart ESG maximises impact whilst minimising tracking error – pushing beyond existing efficient frontiers

An example comparison between a Smart ESG portfolio (dark blue) vs iShares IV MSCI World ESG Enhanced ETF (teal). Further towards the edge = more SDG alignment. Tracking errors are comparable.

Custom indexing and benchmarks

Increase ambition without increasing risk

Create custom indices and benchmarks to achieve investor-specific sustainability objectives. Set your own tracking error limits and Smart ESG will use your risk budget in the most impactful way possible.

An example Smart ESG Biodiversity thematic portfolio vs. MSCI World-equivalent benchmark (black dotted circle). Further towards the edge = more SDG alignment. Tracking errors are comparable.

Thematic portfolio creation

Target over 20 impact outcomes simultaneously

Create portfolios and overlays centred on specific sustainability themes, such as biodiversity, climate solutions, individual or combination of SDGs, and more.

A Smart ESG model portfolio breakdown of sustainable investment and science based target alignment (with improvements vs. benchmark in parentheses). Smart ESG achieved better tracking error than benchmark.

Regulatory and thematic screening

Next-generation screening and exclusions

Screen companies from client-defined universes based on customisable sets of ESG and regulatory factors.

Screens are then optimised simultaneously with risk and impact, ensuring the best possible outcome.

3D asset manager selection

Optimal manager allocations using quantitative methods

Analyse fund candidates and multi-manager allocations in a customisable 3-dimensional space (impact, risk & return).

How it works

Three steps to your high-impact model portfolio

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WHY IMPACT CUBED?

Superior ESG integration

More impact. Less risk

Our factorised & objective ESG data enables advanced portfolio engineering frameworks, delivering ESG outcomes with minimal tracking error

Customise for clients

Align perfectly with your client’s requirements and regulatory frameworks by customising the exact impact and risk you’re looking for

Verify your impact

Tell your impact story. Our regulatory and compliance solutions format our factual outcome data into downloadable reports for both clients and regulators – making reporting a breeze

Go to market faster

Go to market with ESG-aligned investment products faster than before. Deploy your model portfolios directly for autonomous management, or through a dedicated index calculation agent

Customise

Custom benchmarks & constraints | ESG targets and goals | screening

Define your preferences by setting annualised percentage targets, adjusting active weights for sectors, countries, or regions, and setting ambitious ESG goals across various factors.

Refine your portfolio with Impact Cubed’s sector classifications, thematic screens, and company-specific screens, enabling a highly customised investment strategy.

Optimise

Simultaneous optimisation across all custom inputs | Maximum ESG impact for minimum tracking error

Smart ESG will simultaneously take your customisations and optimise with the lowest tracking error possible.

Instantly receive a model portfolio with holding, ISIN and weighting detail ready for investment,

Quantify

Outcome-based, factual ESG data | Online interactive analysis | Lightning-fast reporting

Verify your ESG impact using dependable, fact-based data to gain a comprehensive understanding of your portfolio’s sustainability performance.

Leverage this valuable insight to showcase the tangible benefits of your investment product, attracting interest from environmentally and socially conscious investors and setting your offerings apart in the rapidly evolving ESG landscape.

THE THIRD DIMENSION

The science behind Smart ESG

By adding ESG net impact as a third dimension to the usual risk vs return model, we now see a 3D frontier, which plots the best possible portfolio for a given risk, return and ESG net impact.

With Smart ESG, we’re able to push beyond the current best-case scenarios from existing portfolios, by using our quantitative factor data specifically built for ESG investing

Explore our Smart ESG white paper

We look at Smart ESG in more detail, and we examine how investors can leverage its advantages against a challenging economic and regulatory backdrop

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Get in touch

To see how Smart ESG can transform your approach to sustainable investing, get in touch below…