The Client and the Scope

Having previously worked in ESG, I am eagerly embarking on a journey to explore its evolution in a markedly distinct geographical context. ESG, inherently mission-driven and value-centric, demands a nuanced understanding of regional cultures as well as the ethical fabric of the firm we advise. However, my past experiences, reaffirmed by our current client engagement, shed light on a prevailing oversight: the neglect of periodic self-reflection by many firms. Without a clearly defined identity beyond financial gains, a firm risks diluting its competitive edge, losing its human touch, and hampering its ability to attract investors and diversify asset classes, which are pivotal for long-term value creation.

Our client, the largest alternative asset management firm in Latin America, has a significant influence on the possibility of sustainable development in the region. The head of ESG wants us to create a tangible framework for evaluating how this impact exists and can be achieved. Our overarching mission is to determine how the firm may communicate value to its investors beyond maximizing financial returns. In response to the rapidly evolving global financial regulatory environment, and as the firm expands its scope to markets in Europe and Asia, it is seeking to de-risk its investments by incorporating stringent ESG considerations across its portfolio companies as well as during the initial investment phase. 

While this task involves a lot of creativity, self-management, and fascinating research, before we can sculpt a tangible framework and a unified mission, we need to ensure that more mature asset managers and board members understand the significance of having ESG considerations in the first place. Hard-lined asset managers are failing to understand the value of ESG, and most do not even know what the acronym or impact even means or how it is relevant to investor materiality. This poses an extra challenge for our team, as we navigate through not only collecting the appropriate data to evaluate the firm’s value system but dually having to make the case for ESG, spearheading the unlearning of many within the firm who are resisting the initiative. 

I am learning how this role not only involves designing and presenting a strategy – success in this role necessitates flexibility and an outlook of acceptance. Minimizing expectations helps us lean into our creativity without pigeonholing ourselves into a narrow vision of potential solutions based on our preconceived expectations. As we navigate this dynamic landscape, I've witnessed how consultants morph into multifaceted professionals—simultaneously donning the hats of researchers, communicators, marketing analysts, client relations specialists, and at times, even psychologists. Adopting this holistic approach, we adapt to various roles to address the firm's evolving identity and investment strategies. By embracing these diverse perspectives, we equip ourselves with the most potent arsenal to tackle challenges and devise ingenious solutions that resonate from all angles. 

The Team makes the Impact

With an assignment as hands-on and student guided as this, I remember feeling worried about staying organized, delivering, and communicating effectively with my teammates to achieve the impactful results I hoped for. Before our first interaction as a group, I took a moment of pause to intentionally decide how I wanted to show up in my team. I wanted my teammates to feel that all our contributions were deeply valuable and important to our goals – that we are not siloed individuals trying to prove our ability, but a collective with a shared rhythm that we move to. I can tell they share the same team-driven perspective as me. From day one we were dynamic, receptive, and flexible. I feel very supported, and I am confident and trust that we will each complete our assigned tasks to the best of our ability. 

Moreover, I appreciate the creativity of our team – in the first week, we embraced the strategy of swapping roles weekly, whereby one person guides the group discussion with the client and others take notes and supplement them with additional information or questions. This has allowed each of us to take the spotlight, empowering the whole group. 

Ultimately, I am learning how our success will not lie in individual achievements, but in the cohesive tapestry of ideas, actions, and aspirations we weave together to adapt to the rapidly changing demands of our client organization and project and look forward to learning how to negotiate values and push our client to achieve higher aspirations than they could currently hope.