Novata Expands, Streamlines SFDR Reporting Platform

Novata, an ESG data provider to private markets and investors, has enriched and simplified its Sustainable Finance Disclosure Regulation (SFDR) compliance tools.

The New York-based company said it has made it easier for clients to integrate their SFDR-aligned data with its platform and has created in-platform tools for reporting on the regulation’s Principle Adverse Indicator tests. The service also offers expert guidance and educational resources to clients.

Novata, which was formed in April 2022, said it now has more than 5,300 clients using its data and reporting platform.

ISS ESG to Provide Sustainability Data to Southern German State

ISS ESG will provide sustainability data that will help drive investment decision making by Germany’s Baden-Wurttemberg state government.

The sustainability arm of ISS STOXX said the contract will see the financial research and technology company support the state’s mandate to invest its public funds in sustainable assets. That will include supplying data and metrics on carbon and climate, energy and resources, EU Taxonomy alignment and other investment themes.

The southern state of Baden-Württemberg, which is centred on Stuttgart, has a total of around €17 billion of assets. Its parliament passed a law earlier this year that added sustainability to a list of asset characteristics that must shape its investment decisions, alongside profitability, liquidity and security.

Singapore Launches Platform to Host Reported ESG Data

Financial institutions in Singapore will soon have access to AI-powered digital tools that will help them “collect, access and act upon” ESG data.

Grnprnt, which is pronounced Greenprint, has been created by the city’s Monetary Authority (MAS) to help corporates automate the reporting of sustainability data that financial companies can then incorporate into their own workflows.

The platform, part of MAS’ Project Greenprint to foster sustainable markets in the Southeast Asian city, will be open to companies large and small and eventually encompass overseas businesses. MAS said grnprnt will also be constructed so that it can be integrated with institution’s data platforms.

“Gprnt provides a key data bridge that can generate the trusted and high quality ESG data needed by the financial sector to more efficiently allocate capital towards green and transition initiatives,” said MAS managing director Ravi Menon. “By harnessing generative AI and data APIs at scale, Gprnt will greatly simplify sustainability reporting for SMEs, and in doing so unlock the data needed by the public and private sectors to support SMEs’ sustainability journeys.”

The platform will be operational in the first quarter of 2024.

Sustainability Reporting Rises Among Russell 1000, S&P 500 Companies

A survey has found a surge in sustainability reporting by large-cap S&P 500 firms and mid-cap Russell 1000 companies.

The survey carried out for corporate sustainability researcher Governance & Accountability Institute (G&A) found that 98 per cent of firms on the S&P 500 – which represent the largest companies on the Russell 1000 – published a sustainability report in 2022 from 96 per cent the year before.

The 2023 Sustainability Reporting in Focus research also found that 90 per cent of mid-caps, which occupy the lower-half of the Russell 1000, had issued such reports, compared with 81 per cent the year before.

Among other findings, alignment with the reporting recommendations of the Taskforce for Climate-related Financial Disclosures (TCFD) climbed to half of all companies on the Russell 1000 and SASB remained the most-widely used sustainability standard among Russell 1000 companies.

GRI and IFRS to Launch ESG Reporting Research Lab

Sustainability reporting standards organisation GRI is to launch a research framework with the IFRS Foundation in which companies can discuss and collaborate on meeting their ESG disclosure obligations.

The Sustainability Innovation Lab (SIL) will be based in Singapore in the heart of Asia where 81 per cent of reporting companies do so in alignment with the GRI, the organisation said. Its own standards are in line with those of the IFRS Foundation, which recently published its first reporting frameworks via the International Sustainability Standards Board (ISSB).

“The goal of the SIL is to support stakeholders and all market participants on their disclosure journeys, guiding them to address disparities in sustainability reporting requirements while supporting the further harmonization of the reporting landscape at the global level,” the GRI said.

The SIL will be launched in Singapore on November 20.

UK Said to Propose Regulation of ESG Ratings Providers

The UK is to unveil plans to regulate ESG ratings providers, according to a report in the Financial Times. The proposal is expected to be announced in January, the report said Whitehall citing sources.

Any such submission would indicate a change of approach by the country’s regulators, who until now have suggested only that firms providing ratings should work to a voluntary code of conduct to help reduce confusion among investors.

ESG ratings have been criticised for offering widely different ratings from each other on the same companies, making it difficult for investors to assess which would best suit their mandates.

Australia Publishes Proposals for Sustainable Finance Strategy

Australia has outlined its proposed Sustainable Finance Strategy, including a taxonomy to help create a net-zero framework and a labelling system for green investment products.

The Treasury set out its plans in a consultation document that had been promised in December last year. It calls for transparency in reporting climate impacts and materiality.

Like its EU counterpart, the proposed Australian taxonomy would help manufacturers of financial products assess how closely their funds aligned with sustainability principles and targets. The labelling regime will focus on preventing abuse within retail investment markets.

S&P-Oliver Wyman Tie-Up Adds Physical Risk to Climate Data Service

S&P Global Market Intelligence has added climate-related physical risk metrics to its Climate Credit Analytics tool in a tie-up with management consulting firm Oliver Wyman.

The product will be powered by S&P Sustainable1 data on more than 20,000 companies to help financial institutions assess their portfolio exposure to the risks associated with climate change.

Climate Credit Analytics was launched in 2021 with Oliver Wyman. The latest addition maps corporate data across seven climate change-related hazards.

“This new release will serve banks, insurers, asset managers, asset owners and corporate risk managers to quantify climate risks in an even more thorough manner and thereby more readily integrate into business decisions and client engagement,” said Oliver Wyman partner and vice chairman of financial services for the Americas John Colas.

ESG Book Develops EM Data Tool for FII

Sustainability data and technology firm ESG Book has developed a new service for The Future Investment Initiative (FII) Institute designed to improve ESG data generated from emerging markets.

Non-profit FII enlisted the Germany-based data vendor to create the Inclusive ESG Score to help companies within the regions better report on their sustainability efforts. It is hoped this will plug a US$5.4 billion ESG investment gap in emerging markets.

The initiative was unveiled at the FII’s flagship conference in Riyadh, Saudi Arabia this week.“The Inclusive ESG Score is

a next-generation tool for investors that identifies the sustainability leaders of today and tomorrow, with a transparent, data-driven approach that is tailored to emerging markets,” said ESG Book chief executive Daniel Klier. “Through this partnership, we look forward to providing a solution that enhances investment decision-making, and in turn helps to drive greater ESG investment flows to emerging market companies.”

Arcesium Offers ESG Book Data Through Aquata Platform

American FinTech provider Arcesium is to offer its financial institution clients sustainability data from ESG Book, the Germany-based vendor and asset manager that is supported by a dozen major banks. Analysis, scores and other metrics on 50,000 companies will be provided by ESG Book through Arcesium’s cloud-based platform called Aquata.