SS&C Technologies has launched a new reporting solutions platform which will help asset managers monitor and report on ESG exposure in their portfolios better.
The new platform will support compliance with the EU Sustainable Finance Disclosure Regulation (SFDR), providing greater insights and transparency into ESG portfolio risks.
SS&C and Sustainalytics have partnered together to create disclosure reports based on investor transparency, carbon risk and sensitive sector exposure disclosure.
Managers’ underlying data is scanned against Sustainalytics’ ESG dataset based on the metrics that apply to the fund’s objectives, frequency, design and format, satisfying investor and regulatory requirements.
“The market and regulators increasingly recognise that ESG factors can affect risk and return, and companies are facing increasing pressure to bring more transparency to this space,” said Mike Megaw, managing director, SS&C Regulatory Services.
“Our vendor-agnostic ESG solution platform ensures that managers and investors alike can easily access ESG information to make better decisions about their investments.”
The ESG solutions platform will also help EU financial market participants with the regulatory disclosure requirements for the SFDR.
“We see the growing manager and investor demand to incorporate ESG metrics into client reporting at the manager and portfolio level,” said Tim Langer, director of client relations at Sustainalytics.
“SS&C’s solution provides accurate and detailed ESG rating data which is a game-changer to help investors understand sustainable investing and ESG exposures.”
ESG reporting solutions are in high demand and SS&C’s launch follows similar releases from fund services rivals Apex Group and MUFG Investor Services.
Over the last few months, SS&C has set its sights on expanding in the European fund administration space, after adding over $400 billion in assets under administration (AuA), and the ESG solution will be popular among those meeting SFDR requirements.