Swiss financial data group SIX and Morningstar company Sustainalytics, an ESG and corporate governance, ratings and analytics specialist, have joined forces to provide its clients with ESG data to help them comply with new European Union sustainability regulations
SIX, which is part of the exchange group SIX, will now offer new extensive ESG data sets for the EU Taxonomy and Sustainable Finance Disclosure Regulation (SFDR) especially the core requirement of the Principal Adverse Impact Information.
In addition, clients will be able to tap into the Sustainalytics’ ESG Risk Ratings to make more informed investment decisions.
These ratings measure a company’s exposure to industry-specific material ESG risks and how well a company is managing those risks.
The SFDR and Taxonomy regulations are part of the EU Action Plan on Sustainable Finance, which aims to reorient capital flows towards sustainable investments, manage financial risks from climate change, environmental degradation and social issues, and foster transparency.
It introduces a set of requirements for more transparent disclosure of sustainability metrics at company or issuer and financial product level and aims to increase comparability of investments, as well as improve the prevention of greenwashing.
Sustainalytics is the first third party specialist ESG data provider to be onboarded by SIX to its distribution channels and is part of the group’s strategy to aggregate and distribute data from renowned ESG data providers around the globe, as well as from a large number of manufacturers of financial products, such as fund managers.
SIX standardises all ESG data, makes data from different providers comparable and machine readable and ensures that it can be requested on a company or financial instrument level, such as equities, bonds, or funds, contributing to easier data ingestion.
“Through this collaboration with Sustainalytics, we help to reduce the complexity of data sourcing. By providing data regarding investee companies, product manufacturers and financial instruments,” says Janine Hofer-Wittwer, senior product manager, financial information, SIX.
She adds, “SIX is the single reliable source covering our clients’ ESG data needs, which are becoming increasingly important as the regulatory landscape continues to develop.”
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