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How does ESG impact Capital Markets?

13th Jun 2023

ESG led investment…

The values underpinning Corporate Social Responsibility, ethically conscious business and the Environmental, Social and Governance (ESG) agenda are important to Beeks and have been key drivers in Capital Markets’ investment and procurement activity since the turn of the 21st century.

According to Morgan Stanley’s 2020 Social Investment Forum report investments in sustainable funds have increased by 42% since 2018, highlighting how environmental concerns and ethical business criteria are driving a third of capital investment – with numbers growing exponentially.

…and Procurement

Yet attractive yields from sustainable funds are no longer sufficient for individual and institutional investors. Market participants are demanding positive environmental and social impacts as much from their providers as from their portfolios.

Given their role as dedicated Capital Markets providers, and with a thorough understanding and shared conviction about ethical business practices, Beeks and their partners are acutely aware of the need for a robust ESG strategy.

Tier 1 financial businesses will simply not countenance engaging a supplier who does not demonstrate proven ESG vision and capability, regardless of the superiority of their solution.

Shaping Markets at all levels

Consequently, in addition to shaping portfolios and orienting investment increasingly towards expanding, diverse markets, ESG is also influencing how market providers organise themselves and work collaboratively to ensure compliant infrastructure environments in the sector; and to support global social communities in regions where financial institutions are actively trading.

Sustainable efficiencies

There is a need to expand sustainably in financial hub data centres, as physical co-location space is not an infinite resource.

Beeks’ product stack has been deliberately designed to reduce the footprint required at any given data centre instance, thus creating efficiencies in space and power consumption and enhancing the co-location landlords’ GHG performance.

The Role of Cloud Technology

Beeks has always recognised the importance of Cloud technology as a vital enabler of ESG efficiencies.

The evolution of hosted infrastructure environments towards the Cloud is a key component of Beeks’ offering, dramatically reducing the need for bare metal and server hardware across the financial services sector.

Security without compromise

As a result it is the responsibility of providers such as Beeks and partners to ensure their solutions enable maximum security and good governance in the sector, without hampering market expansion or placing unsustainable demands on businesses.

From this perspective financial technology and good secure governance are inextricably intertwined. They enable and influence each other in a manner unprecedented in the financial sector, where regulation and compliance have often threatened to compromise speed and agility.

Social impact

An ESG compliant infrastructure not only delivers secure, fast, sustainable and uninterrupted trading, it also demands higher standards of partnership and collaboration working towards the common good, with greater social opportunity as the crucial by-product.

Beeks is proud to team up with IPC, the global leader in trading communications and financial network connectivity, to offer seamless ESG compliant IaaS to more than 7000 capital market participants across 750 cities in over 60 countries.

Their shared ESG approach has inspired them to jointly sponsor an African football team and a swimming squad in Scotland.

Beeks and IPC are also jointly committing to donate to local charities on the launch of a new Data Centre instance. If the partnership can maintain its record building rate of 10 new data centres in 6 months during the pandemic then this could be very good news for charities around the world!

ESG durability

With sustainable investments outperforming traditional peer funds by a median of 5% there is clear evidence of environmentally and socially beneficial funds consistently achieving higher public market valuations.

Market participants needs their technology providers to match the demand for rigorous ESG compliance as far as the very data centre location and product suite they deploy within trading environments.

Few infrastructure partners and cloud service providers in Capital Markets are quite so accomplished as Beeks, Equinix and IPC at delivering the technology to integrate ESG policy and outcomes into the very fabric and infrastructure of their customers’ operation.

Talk to us

To find out more about how Beeks can help your organisation expand risk-free and in full compliance with ESG demand, get in touch today.

beeksgroup.com   |   hello@beeksgroup.com

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