Endowus - Driving sustainability through responsible investing

Endowus, a key portfolio company of Fintech Nation, is at the forefront of sustainable investing, driven by its robust ESG (Environmental, Social, Governance) strategy. As a digital wealth management platform, Endowus understands the impact ESG factors can have on the long-term success of clients’ investment portfolios and the broader financial ecosystem. Endowus is committed to embedding ESG considerations into their investment decision-making progress when constructing ESG focused portfolios and onboarding sustainable investment solutions

ESG Investing Approach

Endowus has expanded their list of funds that purport to have ESG integration and there are some among those that have impact as one of their primary objectives. As an investment platform, Endowus endeavors to provide clients with a myriad of investment options and choices so that they can find a strategy that fulfills their risk/return objectives and investment preferences. The funds and platform offerings have all gone through a rigorous due diligence process, which includes a comprehensive ESG assessment.

Endowus has also made significant progress in efforts to develop a framework for evaluating and classifying funds on the platform so that clients can clearly differentiate between the offerings. The framework starts with the three “I”s.

• I - Intentionality - what is the objective of the fund and what is the portfolio manager trying to achieve first and foremost. It could be improving financial returns or it could be creating impact. Sometimes, there are dual objectives. After the motivating force/the primary objective has been ascertained, there are two paths the investment approach may take and these paths are not mutually exclusive.

• I - Integration - These funds incorporate ESG considerations into their investment process with the primary objective of mitigating risk and/or increasing financial returns

• .I - Impact -These funds that are in this segment are those that strive to bring about positive change and actively identify companies that align with specific missions.

Endowus Approach to evaluating and classifying funds on the platform

Along with the enhanced framework and the increase in the number of funds incorporating responsible investing, Endowus has also redesigned their series of ESG advised portfolios to make them more robust and balanced, both in terms of styles and exposures and ESG approaches.

In addition to its ESG investment classification framework, Endowus as a firm, believes that integrating Environmental, Social, and Governance (ESG) principles is essential to their mission of providing digital wealth advisory and fund management services.

Environmental Commitment

Endowus’ environmental strategy is designed to support global sustainability goals and address climate-related risks:

Operational Sustainability: Endowus implements energy-efficient practices within their operations, where possible, such as reducing energy consumption and promoting digital documentation, to minimize their carbon footprint.

Social Responsibility

Endowus is dedicated to fostering inclusive growth and supporting the well-being of their employees and the communities they serve:

1. Accessible Services: Endowus offers financial products that are accessible to a diverse range of clients, ensuring that their services empower individuals and communities across different demographics.

2. Employee Well-Being: Endowus promotes a workplace culture that values the mental, physical, and emotional well-being of our employees, recognising that their satisfaction is integral to the firm’s success.

3. Community Engagement: Endowus actively engages in community development through philanthropy, volunteerism, and partnerships with local organisations, reflecting their commitment to corporate social responsibility.

Governance

Endowus is also committed to maintaining the highest standards of governance as it is crucial to robust operations:

1. Transparency and Accountability:Endowus is committed to having transparent ESG reporting and investment practices, inspired by industry leaders’ commitment to enhancing external reporting on ESG integration.

2. Ethical Conduct: Endowus has a code of ethics and integrity in all their business dealings, ensuring rigorous compliance and oversight to prevent unethical behavior.

3. ESG Oversight: An ESG Working Group has been established to oversee and implement the integration of ESG factors into the investment processes.

Conclusion - Sustainable responsible investing

Endowus, as a portfolio company of Fintech Nation, exemplifies leadership in ESG investing and sustainability. Through a comprehensive ESG classification framework for funds to help clients understand the different aspects of ESG investing better, Endowus aims to enhance the sustainability and ethical dimensions of investment products on the platform. Their commitment to responsible wealth management underscores their dedication to creating a sustainable future for all stakeholders and aligns with Fintech Nation’s mission to advance sustainable financial practices.