K2 Integrity Launches First-of-Its-Kind ESG Assessment Certification

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Jul 06, 2022, 10:19 ET

NEW YORK, July 6, 2022 /PRNewswire/ -- K2 Integrity ("K2), the leading risk and financial crimes advisory firm, today announced the launch of a first-of-its kind solution for independent certification of environmental, social and governance ("ESG") strategies for funds and fund managers. The offering will build on K2's global reputation for assisting clients in addressing risk, meet regulations and compliance requirements, and proven track record in assessing, designing and implementing certifications and trainings for the marketplace.

Applying proprietary framework, K2 Integrity will conduct a detailed review of qualitative and quantitative metrics to verify that a fund and manager is compliant with ESG best practices. K2's assessment takes into consideration applicable regulations that improve trust and transparency as these relate to ESG criteria. It also mitigates the risk of "greenwashing," which has become more prevalent as interest in ESG investments has grown.

"The need to validate and quantify ESG initiatives has never been greater, as investors, regulators and other stakeholders pay closer scrutiny to funds' activities," said Andrew Rabinowitz, Co-CEO of K2 Integrity. "Funds and fund managers must make sure they are following through on their ESG commitments. This assessment certification complements K2 Integrity's existing financial crime risk management services and will allow us to remain best-in-class in serving our global clientele through all of their needs, by bringing together ESG, regulatory, legal, industry, training and certification expertise."

This proprietary ESG certification is based on a fund's voluntary self-disclosure and independent review by K2 Integrity experts, who analyze, assess and validate the fund's own commitment to investors. Rather than rely on self-reporting by a manager, independent certification provides a robust review of approach and processes, as well as demonstrates alignment with the industry's best practices.

According to a recent survey by Callan, 78 percent of asset managers now incorporate ESG into their investment allocations. According to Morningstar, as of the first quarter of 2022, more than 2,000 asset managers globally handle some $343 billion in sustainable funds, with such strategies taking in more than $96.6 billion in net new deposits over the period.

Under the leadership of Andrew Rabinowitz, K2 Integrity is collaborating with select leading firms such as Maples Group, Kalmus Capital, Novata, Reed Smith, Ernst & Young, RepRisk, Citco Fund Services and academics from renowned institutions, including Yale University, Cornell University, University College-London, Carnegie Mellon University, and Columbia University, in the development of ongoing criteria for the certification, ensuring a thorough, meaningful, and independent assessment for funds and fund managers.

About K2 Integrity

K2 Integrity is the leading risk and financial crimes advisory firm helping clients understand and manage their risk so they can lead with confidence. With some of the most knowledgeable practitioners in the industry, K2 brings together deep subject matter expertise with proprietary technology and digital offerings to help clients creatively solve today's issues while also planning for the future. With offices in New York and London and more than 400 employees globally, K2 has deep knowledge and experience working in every region and numerous jurisdictions around the world. To learn more about how K2 Integrity is revolutionizing the management of risk, visit www.k2integrity.com, or follow us on Twitter or LinkedIn.

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SOURCE K2 Integrity