Scale ESG data for easy regulatory compliance
The SFDR level II and Taxonomy regulations bring about ever more challenging concerns around data standardization. The EET (European ESG Template) released by the independent group FinDatEx is good news for investors looking to scale ESG data.
The EET race for data points
The European ESG Template aims at providing guidance for investors to comply with the new MiFID II sustainability requirements. From an Asset Manager perspective, the tool is designed for fund manufacturers to share the disclosure of the ESG criteria of their funds (and/or funds of funds) to their investor clients and fund distributors. Asset Managers will have to generate the EET for each of their funds, with up to – depending on the ESG nature of the funds manufactured – 111 columns to fill in per fund for their positions as of 31st Dec 2021, by 1st Jan 2023 at the latest.
The race to find proper ESG data providers with the right set of data points and issuer coverage has begun. In this race, Manaos and Clarity AI combined have a strong competitive edge.
Sourcing ESG Data: combining the power of AI and platforms
Manaos and Clarity AI both act as end-to-end solutions to source quality ESG data, harnessing either third-party data through an ESG marketplace platform approach in the case of Manaos, or leveraging AI in the case of Clarity AI. Thanks to a single and evolutive platform offering in-house and third-party ESG-related services, Manaos offers a strong competitive edge to both asset managers looking to collect data to fill out the EET, and to Insurers and Distributors to leverage the EETs to comply with SFDR by 1st Jan 2023.
As you will see from the tutorial video down below, the Manaos EET Generator app provides Asset Managers with a self-service tool to produce their EETs. In just a few steps, investors can enrich their fund inventories with the adequate preferred ESG data to choose from the list of partners readily available, and export their EET to excel format.
For Asset Managers invested in funds of funds, our Fund Inventory Collector app enables users to reveal their fund composition, prior to using the EET Generator.
Clarity AI: Market-leading accuracy and breadth of coverage for high-quality reporting
Clarity AI, recently named a leader in the latest report “The Forrester New Wave™: ESG Ratings, Data, And Analytics, Q3 2022,” harnesses the power of advanced technology to provide its clients with best-in-class data and an efficient and cost-effective process, through its integration into platforms like Manaos.
Users can efficiently fill out the EET leveraging Clarity AI’s SFDR and EU Taxonomy database, with coverage 2-13 times more than any other providers, including 98% of the ACWI index. Its technology, trained by a global team of data scientists and sustainability and regulatory experts, analyzes more than 50,000 companies, 300,000 funds, 198 countries and 188 local governments.
Its quality checks include but are not limited to:
- 1 million data points processed each week to contrast overlapping reported data, select the best option, and estimate missing data.
- 100,000 articles from 33,000 trusted new sources assessed every day through Natural Language Processing to keep the company controversies up to date and removes human biases.
As disclosure requirements become the norm for financial market participants across the globe, sourcing reliable and broad data is no longer an option but a mandate for those under the scope. Especially, with the added attention on the issue of greenwashing, which goes beyond regulatory scrutiny.
Clarity AI, through its integration into Manaos’ platform, allows users to source and disseminate ESG information with confidence to bring once and for all societal impact to markets.
This article was originally published in Manaos’ website.
