About a-team Marketing Services
The knowledge platform for the financial technology industry
The knowledge platform for the financial technology industry

A-Team Insight Blogs

ESGi – an Element22 and Agility Sciences Solution – Offers Buy-Side Firms Trusted ESG Data Updated in Real Time

Subscribe to our newsletter

Data consultancy Element22 and distributed ledger developer Agility Sciences have released ESGi, an innovative solution designed to solve problems of ESG data, such as time lags and accuracy, and provide buy-side firms with trusted data in real time. The release coincides with the first deadline of the EU’s Sustainable Finance Disclosure Regulation (SFDR), which comes into play tomorrow, 10 March 2021.

While interest in ESG investing is rising rapidly, sourcing required ESG data is a problem as it is only disclosed by large companies in annual reports, creating a time lag that is not conducive to good investment decisions. Also, private companies do not need to disclose their ESG credentials, a problem for asset managers looking to differentiate by including more private companies in their portfolios.

ESGi solves these problems with a solution based on Agility’s Activeledger interoperable and permissioned distributed ledger platform. It allows fund managers to identify companies they want to review, both public and private, and invite the companies to join the platform and answer questions on their ESG policies and data.

Investees load information using a web interface and the data is consumed using an API to the platform. To ensure data security, only generic ESG data is on the chain, with data such as portfolio constituents and holdings held in the asset manager’s environment where it can be integrated with ESG data but is never disclosed.

Mark Davies, partner at Element22, says: “ESGi makes it as easy as possible for firms to submit, select and share ESG data. If an ESG data point is on the platform it doesn’t need to be submitted again and could be used for any number of regulations as they emerge.”

While data vendors offer a good breadth and depth of ESG data, it is largely from public documents and has a significant time lag. Davies explains that ESGi avoids time lags by updating data in real time and pushing it to firms requesting the data. He adds: “ESGi is designed to supplement vendor data and answer explicit questions. It can also add investees that are not covered elsewhere.”

The solution will initially enable fund managers to source mandatory ESG data needed to comply with SFDR. Additional functionality to support sustainability regulations in other jurisdictions as well as use cases such as product creation and portfolio construction will follow.

It will be run in a pilot phase for the next couple of months and is expected to transition to a commercial model later in the year. Investees and fund managers are taking part in alpha and beta development, although Davies notes that Element22 and Agility Sciences are happy to help firms with more immediate needs to close ESG data gaps. He is also keen to hear from firms that would like to take part in the pilot, but will be locking down numbers soon.

Meantime, ESGi has been selected to join the Investment Association’s (IA) latest cohort of high potential fintech firms that will take part in the IA Engine Innovator Programme, the organisation’s fintech accelerator and innovation hub for the investment management industry.

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: Mastering Data Lineage for Risk, Compliance, and AI Governance

Financial institutions are under increasing pressure to ensure data transparency, regulatory compliance, and AI governance. Yet many struggle with fragmented data landscapes, poor lineage tracking and compliance gaps. This webinar will explore how enterprise-grade data lineage can help capital markets participants ensure regulatory compliance with obligations such as BCBS 239, CCAR, IFRS 9, SEC requirements...

BLOG

Data Quality Posing Obstacles to AI Adoption and Other Processes, say Reports

The rush to build artificial intelligence applications has hit a wall of poor quality data and data complexity that’s hindering them from taking advantage of the technology. Those barriers are also preventing firms from upgrading other parts of their tech stacks. A slew of surveys and comments by researchers and vendors paint a picture of...

EVENT

ESG Data & Tech Briefing London

The ESG Data & Tech Briefing will explore challenges around assembling and evaluating ESG data for reporting and the impact of regulatory measures and industry collaboration on transparency and standardisation efforts. Expert speakers will address how the evolving market infrastructure is developing and the role of new technologies and alternative data in improving insight and filling data gaps.

GUIDE

AI in Capital Markets: Practical Insight for a Transforming Industry – Free Handbook

AI is no longer on the horizon – it’s embedded in the infrastructure of modern capital markets. But separating real impact from inflated promises requires a grounded, practical understanding. The AI in Capital Markets Handbook 2025 provides exactly that. Designed for data-driven professionals across the trade life-cycle, compliance, infrastructure, and strategy, this handbook goes beyond...