Linedata, a global provider of asset management technology, data and services, has become the first technology vendor to integrate Environmental, Social, and Governance (ESG) data into asset managers’ workflows through collaboration with independent provider Arabesque S-Ray.
A wide range of ESG data assets feeds directly into Linedata’s software to help managers meet growing demands from regulators and investors for greater transparency over ESG funds, and to provide a competitive edge through sustainable positioning and differentiated product offerings.
Arabesque S-Ray’s quantitative data tool uses machine learning to crunch the sustainability performance of over 8,000 of the world’s largest listed companies, and directly integrates with Linedata’s portfolio and order management solutions for unparalleled ease of use. It is available to Linedata clients in Europe, Asia, and North America.
“We believe economic value creation can go hand in hand with environmental stewardship, social inclusion, and sound governance,” comments Georg Kell, Chairman of the Arabesque Group, and founding Executive Director of the United Nations Global Compact. “Our agreement with Linedata empowers more asset managers to make better decisions for a sustainable future.”
Positioning powerful ESG intelligence at the fingertips of Linedata’s over 450 global asset management clients helps managers support ESG decision-making and adapt to evolving requirements under Europe’s new Sustainable Finance Disclosure Regulation (SFDR) and the United States’ new ESG agenda.
The move also marks an expansion of Linedata’s Data Management Service, a key component of its cloud-based Asset Management Platform – AMP launched last year. It offers an innovative commercial model which gives basic ESG and UN Global Compact scores to users of Linedata software, and the flexibility to access premium data on a usage basis, a break from the industry standard.
“Linedata is committed to helping market participants to make more and better ESG driven decisions. With sustainable fund assets hitting a record USD1.7 trillion in 20201, asset managers recognise ethical and sustainable funds as a major growth opportunity,” says Gary Brackenridge, Linedata’s Global Head of Asset Management. “The combination of Arabesque’s market-leading ESG data seamlessly integrated into Linedata’s cloud-based portfolio workflows with a unique usage model fits with what we know clients are looking for: commercial flexibility, high-value content and excellent user experience.”
Providing instant access to Arabesque S-Ray’s data supports the wider industry shift to ESG investing, while removing a major operational burden from asset managers. The ability to leverage independently validated ESG scores streamlines and accelerates the development of ethical, sustainable and funds and in turn helps guide which companies consciously minded investors and consumers choose to support.
Users benefit from ESG data insights throughout the entirety of their investment operations. They can score, rebalance, and create new ESG portfolio strategies, products, and workflows; integrate ESG factors into pre- and post-trade Compliance at asset and fund level; and manage regulatory and investor transparency and reporting with dashboards, screening, and monitoring tools.