Data Management Insight Brief
ECB Says Data Quality is Key to its own ESG Guidance Tools
The European Central Bank (ECB) has said the “development of high-quality data” is key to a set of statistical indicators it’s created to help the bank incorporate sustainability risks and markets in its monetary policy decision making. Executive board member Isabel Schnabel made the comment after the ECB said its indicators would focus on sustainable finance, financed emissions and the impact of physical climate risks on portfolios.
US Banks to Undergo Climate Risk Stress Tests
US banks will have to undergo stress tests of their climate risk management and resilience practices under during an exercise organised by the Federal Reserve. The tests will be conducted by the end of July and will examine banks’ preparedness under their current climate policies and under a state of net-zero greenhouse gas emissions.
S&P Global Expands KY3P with Acquisition of TruSight Solutions
S&P Global has acquired TruSight Solutions, a provider of third-party vendor risk assessments. The acquisition will be combined with KY3P by S&P Global and integrated into the Market Intelligence division. Know Your Third Party (KY3P) was initially a Markit initiative acquired by S&P Global with the company. TruSight was founded by a group of financial institutions including Bank of America, Bank of New York Mellon, JP Morgan and Wells Fargo, and will expand S&P Global’s third-party vendor risk management solutions by offering high-quality validated assessment data designed to reduce the vendor due diligence burden on service providers to the financial services industry.
FactSet Integrates Coin Metrics Digital Assets Data into Asset Management Solutions
FactSet is collaborating with Coin Metrics to integrate the latter’s digital assets data across its solutions for asset management, wealth management, and research. The aim is to support client needs to analyse digital instruments as part of multi-asset class portfolios. Additionally, the collaboration adds digital assets sector coverage to FactSet’s StreetAccount news service. The companies also plan to collaborate on new thematic indices that include a digital component.
S&P and UN Creates Biodiversity Risk Framework for Investors
A nature-related risk assessment methodology has been devised by S&P Global’s Sustainable1 unit and the United Nations’ Environment Programme. The framework, which is aligned with the Taskforce on Nature-related Financial Disclosures, will enable investors and companies to assess the biodiversity risks to which businesses are exposed and the impacts they are having on surrounding flora, fauna and natural resources.
Solactive Acquires Minerva Analytics
British ESG research, proxy voting and stewardship services provider Minerva Analytics has been bought by indexing firm Solactive. The deal will enable the combined company to offer better ESG indices and benchmarks as well as improved engagement capabilities with portfolio companies, for its 500-plus clients.
IAASB Sets Out Plan for ESG Assurance Standards
The International Auditing and Assurance Standards Board (IAASB) has put to consultation proposals to standardise the verification of sustainability disclosures. The New York-based global overseer of auditing has invited comments to its website by April.
Danish Pensions Firm Forca Selects Gresham Technologies to Realise Client Service Benefits
Forca, a Danish pensions services provider, has selected Gresham Technologies Control solution for holdings, cash, and transaction reconciliations. By automating all data validation, reconciliation, and regulatory reporting, the solution will allow Forca to tackle data control issues and focus on exception management and transaction reconciliation. With the implementation of the solution already underway, the pensions firm expects to realise client service benefits including efficient, logical, and intuitive end-to-end data ingestion to reconciliation.
Qlik Plans Acquisition of Talend
Qlik, a provider of data integration and analytics solutions for the financial services sector, plans to acquire Talend, provider of a unified platform dedicated to data integration, integrity, and governance. The deal would bring together two Thoma Bravo-backed firms to deliver a cloud independent portfolio of solutions designed to help customers address data integration, transformation, and governance challenges in the transition to cloud. The transaction is expected to close during the first half of 2023 following regulatory approvals.
Switzerland Proposes Green Labelling Rules
Switzerland has proposed new rules covering the labelling of sustainable financial products traded in the Alpine nation’s markets. The Swiss Federal Council said it will require issuers of the products to be able to justify the use of descriptive terms such as “green” and “ESG”. Among other requirements, the council proposes that issuers include disclosures on their products’ approach to sustainability and provide third-party verification of their credibility.