Euroclear’s MFEX adds ESG reporting solution

Euroclear has partnered with software company Greenomy to add a new environment, social and governance (ESG) reporting solution to its digital fund distribution platform, MFEX.

The company said the service has been introduced to strengthen the data solutions capabilities it offers to asset managers and fund distributors.

It adheres to the European ESG Template (EET), a standardised framework complying with upcoming regulatory requirements from the regulatory technical standards (RTS), under the Sustainable Finance Disclosure Regulation (SFDR).

Brigitte Daurelle, CEO of MFEX by Euroclear.

MFEX’s ESG reporting solution will allow fund managers to upload their holdings per investment strategy, create EET reports on an ISIN level, comply with regulatory ESG reporting requirements, and enable the dissemination of EETs to stakeholders and investors.

Climate change is high on the agenda with the 2015 Paris Agreement marking the first legally binding agreement to meet an objective to keep the earth’s mean temperature below 2°C of pre-industrial levels.

Europe has been at the forefront with the European Green Deal aiming to deliver a net-zero emission economy by 2050.

The aim is to create the first climate-neutral continent by implementing a range of policies such as investing in environmentally friendly technologies and decarbonising the energy sector.

In financial services, industry participants are supporting economic growth while reducing pressures on the environment through sustainable finance.

To this end, Euroclear bought MFEX Group last year and has invested in Greenomy, a sustainability reporting Software as a Service (SaaS) that helps companies and financial institutions measure, disclose and improve sustainability in accordance with new EU sustainable finance legislation.

“We are pleased to be able to offer this new service to asset managers and support them with their impending ESG reporting requirements,” says Brigitte Daurelle, CEO of MFEX by Euroclear.  “This strategic alignment will also strengthen our EET dissemination offering to fund distributors.”

Alexander Stevens, CEO of Greenomy, adds, “This combined offering enables the trusted network of MFEX clients to be compliant with SFDR. Our mission is to ensure that capital is allocated to truly sustainable investments boosting the real economy and ultimately making it more sustainable.”

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