Alveo has extended its commitment to ESG solutions with the integration of FactSet’s ESG data sets into its data management platform. It is also responding to buy-side firms’ requests to access, manipulate and analyse ESG data as part of broader efforts to achieve straight-through-processing for all reference data and deliver better data access to business users, reduce costs and increase efficiencies.
The company has previously extended its data model to process ESG data from traditional data vendors including Blomberg, Refinitiv and ICE, and is now writing an interface for the FactSet feed that is expected to be in production in July 2021, along with some use case examples. Alveo will be the first data management platform to include FactSet ESG data and is working with the data vendor to put its data mastering and analytics solutions into the Open: FactSet Marketplace.
With FactSet focussed on the buy-side, the addition of its ESG data to the Alveo data management platform is a good play into Alveo’s buy-side strategy. Mark Hepsworth, CEO at Alveo, says: “ESG will cause huge disruption in data management over the next couple of years, particularly on the buy-side. Alveo is doing a lot of work here, bringing in and aggregating data, and correlating indices to ESG data so that clients can look through the indices and drill down to see companies and their ESG track record.”
While there are already ESG indices and ratings in the market, Hepsworth says firms are looking at the potential of both vendor offerings and creating their own solutions. “Firms want to differentiate and not depend on third-party indices. If they take the data, manipulate it and create their own opinions and analytics on ESG data, they can surface proprietary information on companies that can give them insight into what assets to hold and help them differentiate.”
Noting that ESG data has been ‘the straw that broke the camel’s back’ for many buy-side firms, Hepsworth also describes how Alveo is helping them with ESG solutions, but also implementing STP for all their reference data. He says: “Buy-side firms want to bring in multiple sources of reference data and get it to business users as quickly and cost effectively as possible. They also want ROI on market data – which is where ESG fits in.”