Data management software provider GoldenSource has enhanced its environmental, social and governance (ESG) impact solution with greater access to raw ESG data, more nuanced portfolio screening and tuning, advanced analytics features, including greenhouse gas (GHG) scenarios, and further support for the European ESG Template (EET).
The new capabilities also include what-if analytics, meaning that users will be able to analyze specific outcomes of potential investment shifts, such as swapping out or adding investments and the implications this would have for the overall portfolio ESG score.
As well, topic and template tagging simplify the generation of the EET for a firm’s products and the selection of products that fit a specific EET preference. Based on tagging, the solution also mimics the SFDR Principal Adverse Impacts template, accelerating compliance with disclosure requirements.
As part of the new analytics available, users, for example, can look at carbon emissions and physical risk under GHG climate warming scenarios as companies pledge commitment to reducing targets. Based on this, market participants can assess whether, when and how the company in question is contributing to net zero. And the new capability to aggregate this at a portfolio level will help firms assess overall impact.
Volker Lainer, vice-president of product management and regulatory affairs at GoldenSource, says: “As all market participants face increasing pressures to be compliant with ESG regulations, these new capabilities offer crucial insights and even more granularity when it comes to the sourcing, analysing and application of data for ESG use cases across the business.”