WHEB Asset Management: ESG Investor of the Year 

At a glance:  
Who:  WHEB Asset Management 
What:  An investment strategy underpinned with analytical tools to measure ESG impact 
Where:  WHEB is London-based 
When: Award presented March 2024 Why:  Spearheading best practice in the ESG investing space, including the net-zero transition 

The Challenge: There are yawing global investment gaps related to the delivery of net-zero, nature restoration and the broader sustainable development agenda. Investors are seeking to play their part, with ESG-related institutional investments globally poised to grow by almost 13% each year between 2021 and 2026 according to PwC.  

As ESG finance scales up, there is a present risk of greenwashing and impact-washing. This finance needs to make a tangible, positive contribution to the sustainable development agenda to buck stalled progress if international goals are to be met. 

This edie Awards category recognises an investor making outstanding and credible progress in this respect, from its own strategy and governance, to its day-to-day projects, to its broader advocacy. 

The Solution:  

British asset manager WHEB was one of the first of its size and sector to certify as a B Corp, gaining the sought-after certification in 2016. It describes its mission as “advancing sustainability and creating prosperity through positive impact investing”.  

WHEB deliberately avoids investments in more than 85% of the MSCI World Index, purely because the companies it invests in must be deriving the majority of their revenues from products and/or services which meaningfully address social and/or environmental challenges. Investee companies also can’t be deriving 5% or more of their revenues from activities with a negative ESG impact. 

How it works:  

WHEB grew its portfolio of assets under management from £25m in 2012 to £1.2bn in 2023.  

The London-based firm has always existed to scale ESG investment, but made a concerted effort to scale-up its backing of environmental solutions, growing its portfolio in this space by more than 340% in the five years through to September 2023. It bears noting that WHEB publicly signals all company investment, in the hopes of driving further support for clients.  

In tandem with growing rapidly, WHEB strengthened its ESG requirements for new and existing investees while also fine-tuning its internal sustainability strategy, accelerating its advocacy and developing pioneering tools to measure its true impact.  

To give an example of new requirements, WHEB is leaving no wiggle room for net-zero laggards, with a requirement for 100% of portfolio emissions to be covered by a net-zero carbon target by 2028. It exceeded a goal for 50% coverage three years early, in 2022, setting it on a strong course to meet the 2028 target.  

Measuring portfolio emissions is challenging and has required the implementation of innovative methodologies. WHEB highlighted in its application for this award its ‘Impact Engine’ – a digital analytical tool that evaluates the level of positive impact from the products, services and operations of organisations it invests in. Impacts assessed range from climate to nature to society and community. These figures are considered alongside business performance and equality to inform investment decisions and communications with stakeholders. 

The Impact Engine’s predecessor, the Impact Calculator, first launched in 2016 and has been replicated widely across the sector. 

Beyond its own operations and portfolio, WHEB is advocating for broader changes to legislation and regulation that would compel more transparent ESG reporting in finance (including TNFD-aligned reporting on climate risk) and unlock finance for the delivery of net-zero and the UN SDGs. It is a founding supporter of Business Declares and the Net-Zero Asset Manager Initiative and has influenced the development of standards such as GIIN and regulations such as Sustainability Disclosure Requirements (SDR). It continues to advocate for a strong UN Plastics Treaty, stronger green finance agreements at climate COPs and a more robust UK net-zero transition plan. 

The results: As noted above, WHEB has rapidly grown its portfolio while increasing the share allocated to sustainability solutions and tightening the ESG requirements placed on all portfolio holdings. 

On climate, it has over-delivered on its net-zero target for financed emissions and is striving to have its emissions targets verified by the Science-Based Targets Initiative. WHEB was an early adopter of the TNFD reporting framework in 2016, which became mandatory for certain large businesses in the UK in 2022. It additionally moved ahead of the curve on B Corp certification in the financial sector, also in 2016.  

WHEB has also emphasised, in its entry for this award, the importance of creating a range of positive impacts. Its Impact Engine showed in 2022 that every £1 invested would support benefits as diverse as recycling, improving healthcare, treating wastewater and providing education.  

The Judges said: “WHEB has made considerable, tangible and measured progress in recent years, exceeding targets and embracing transparency on where the impact is generated. Their application was clear and their progress impressive.”