© Li DingThe finance industry has seen an ongoing rise in ESG-related investment over recent years which is bringing new challenges and opportunities for all stakeholders.
As the European regulatory environment tightens, it demands greater transparency and clarity around financial product’s sustainability credentials. In this respect, the EU taxonomy has defined criteria to classify economic activities as environmentally sustainable. Funds themselves are categorised under SFDR as article 6, 8 or 9 depending on their sustainability focus, and promoters are required to produce non-financial reporting.
As investor appetite for sustainable investment products grows, their requirements in terms of ESG monitoring and reporting have seen a corresponding rise. Climate, reputational, physical, and transition risk all require constant monitoring across the environmental, social and governance factors that make up the ESG mix.
To help clients tackle the challenges they face, CACEIS has a dedicated ESG offer to cover every aspect of their products’ ESG-related needs.
Key Features
CACEIS’ OLIS platform enables clients to perform detailed post-trade analyses of portfolios’ ESG performance via dynamic dashboards and on-demand reporting.
And so, non-financial aspects of portfolios’ underlying investments can be monitored across environmental, social and ethical factors.
Detailed indicators dashboard
Index or benchmark comparisons
Look-through for FoFs
Aggregation capability
Portfolio simulations
Data Sources
OLIS ESG offer is powered by Confluence, which centralises multi-source ESG data feeds from market-leading providers including:
ESG RISK MONITORING
To measure and monitor ESG risk across all sustainability aspects, including:
> Access to specialised ESG data and sustainability indicators to calculate ESG scores for portfolios and individual securities
> Portfolio risk exposure for each ESG factor, including physical and transition risk
> Task force on Climate related Financial Disclosures (TCFD) monitoring. TCFD provides a framework on climate-related risks and the carbon footprint
> The principal adverse impacts (PAI) of investments on sustainability drivers according to SFDR abd UNSDG criteria
> Verifications on alignment with the Paris Agreement's objectives and temperature trajectories
> Active ESG screening for controversial companies and activities
ESG REPORTING
To ensure compliance with SFDR's transparency and disclosure requirements, CACEIS provides:
> Product sustainability level disclosures using multiple indicators
> Reporting on the negative impacts of investments across environmental and social factors
> Monitoring of portfolio asset percentage in alignment with the EU Taxonomy
> Pre-populated SFDR reports for article 8 and 9 funds, ready for publication in pre-contractual documents and periodic reports
> Principle Adverse Impacts (PAI) statement and underlying indicators
> Overview of funds' ESG alignment
> Pre-populated EET files. Once finalised, EET files can be disseminated using CACEIS' TEEPI Data Hub, which is already used for sharing files such as EPTs, TPTs and EMTs
Main Advantages
In addition to the standard reports via the ESG monitoring tool, CACEIS can customise reports. CACEIS staff are available to help with any customised reporting needs.
The main advantages of using CACEIS' ESG reporting offer:
Data feeds from industry-recognised providers
A comprehensive solution that complies with evolving regulations
Full integration with CACEIS' post-market systems
Available through OLIS just like other reports
Customisation capabilities to suit individual needs
Specialised staff to ensure you get the most from the service
To find out more, contact our specialists:
Michel Arany
Group Product Manager
michel.arany@caceis.com
The ESG Team
ESGteam@caceis.com
