A new tool has launched enabling buy and sell-side firms to compare portfolios from an ESG perspective using data from a range of providers.
The GoldenSource ESG Impact tool allows users to carry out portfolio screening, as well as comparison and quality checks, which the creators said is a result of it being able to look through portfolios to the underlying data, the instruments it holds, the related issuing legal entities (at any hierarchical level of a group structure) and then into all related ESG data from all available sources.
Users can also pull together scores, ratings and ranks from the range of sources – which includes Refinitiv, Fitch IHS Markit and others – and carry out data quality checks, making firms less susceptible to greenwashing, the firm said.
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Volker Lainer, VP of product management and regulatory affairs at GoldenSource, said: “As ESG has grown market participants have had to sift through an overwhelming amount of information from multiple sources, each with its particular content strengths and refined methodology to provide valuable insights.
“This solution means that not only will users be able to discover and compare more useful ESG metrics and granular data across multiple sources, but also check the ESG metrics through a data quality framework. This will help navigate the changing regulatory environment and the challenges with discerning what is truly considered a ‘sustainable’ investment and what conforms to a published ESG strategy.”
The firm highlighted the service carries a low carbon footprint as GoldenSource manages the solution and the integration via an API, with the clients submitting any number of portfolios for screening, and the relevant ESG data that the client has subscribed to will automatically be returned. Furthermore, GoldenSource inbound APIs enable on-boarding of current and future structured and unstructured ESG content from new data sources.
John Eley, CEO of GoldenSource, added: “The solution is built on a foundation of market leading data management capabilities, but also GoldenSource’s experience in modelling ESG attributes, which makes it mature for this area of the financial markets. As part of our wider offering, GoldenSource ESG Impact slots in to create a bridge from the portfolio to the ESG content that otherwise portfolio managers would need to do themselves, making investment decision making more efficient.”