Alveo launches new ESG data management capability to help meet SFDR requirements

Alveo, a financial data management solutions provider, has unveiled new environmental, social and governance (ESG) data management functionality, including an extension of the firm's standard industry data model and UI that helps clients understand data quality, data lineage and divergence between third party ratings.

Driven by regulation such as the EU’s Sustainable Finance Disclosure Regulation (SFDR), the data model now incorporates the data fields required to address the SFDR’s indicators applicable to investments in investee companies, sovereigns and supranationals, and real estate assets.

Alveo’s business rules allow for completing missing data points based on peer group analysis, converting reporting bases and units of measurement and proxying information based on historical records. 

Alveo has also extended its standard library of off-the-shelf connectors with financial data feeds. Alveo’s Ops360 user experience includes dashboards showing the sourcing, processing and completion status of data requirements as well as insight into data quality metrics and complete lineage to show the provenance of reported data fields. Clients can also use Alveo to integrate multiple sources of ESG data and derive analytics, for example showing the divergence between third party ratings or the creation of clients’ own proprietary ratings.

“ESG is the biggest data management requirement to hit the buyside for some time,” says Mark Hepsworth, CEO Alveo. “We see clients requiring access to multiple ESG data sources and increasing volumes of data. At the same time clients want to manipulate this data and make their own decisions about it and how they present it to their clients.”

“Alveo’s multisource approach to data management is well suited to address ESG data management requirements,” says Neil Sandle, Head of Product Management, Alveo. “With wide dispersion in third party ESG ratings and the need for granular reporting against the SFDR’s PAIs, firms need to combine different sources with their own expertise. ESG data is essentially reference data which we have been helping clients manage for many years. In addition, Alveo’s targeted data sourcing and advanced data derivation and distribution capabilities make it the ideal solution to help firms address new ESG requirements,“ Sandle concludes.