EU SFDR: ICE launches data solution for ESG regulation in Europe

The ESG regime requires market participants and financial advisers to identify and disclose sustainable impacts and whether and how each financial product addresses the listed Key Adverse Impacts (PAIs).

Intercontinental Exchange has launched a data solution for the European Union Sustainable Financial Information Disclosure Regulation (EU SFDR).

The EU SFDR calls for more transparency and standardization in the products offered by asset managers to help investors compare among the growing number of investments with sustainable objectives.

ICE’s SFDR PAI solution provides event-triggered updates for all mandatory adverse sustainability indicators applicable to corporate, sovereign and supranational investments.

The regime requires formatted disclosure specifically on ESG-related indicators, including greenhouse gas emissions, board gender diversity and energy consumption ratios.

These indicators are available in a formatted file or web-based visualization tool for clients as part of ICE’s SFDR PAI solution, a service that links equities and fixed income securities to the nearest corporate reporting entity.

Elizabeth King, President of ESG and Chief Regulatory Officer at ICE, said: “The transparency ambitions of the EU’s SFDR place new demands on asset managers and investment advisers. ICE’s SFDR PAI solution provides up-to-date and granular values ​​for SFDR adverse sustainability indicators that market players need to meet SFDR requirements.

Key Adverse Impacts (PAI) disclosure is expected to affect a significant portion of global asset managers, asset owners, portfolio managers and financial advisers with clients in the EU.

ICE’s solution collects, calculates and normalizes data in formats closely aligned with regulatory technical standards for easy use by customers.

As governments take action on sustainable finance, a growing number of fintech companies are developing and commercializing new solutions that address new challenges from market players.

This week, Xignite launched a new Environmental, Social and Governance (ESG) data API in partnership with ESG Book, a global leader in ESG data and technology. The Market Data API’s goal is to help brokerage, wealth and media clients increase user engagement and retention with sustainable trading products.

This is a time when brokers and wealth managers are looking to leverage ESG data to increase client engagement around their portfolios and differentiate their offerings in a highly fragmented market.

Xignite’s new ESG API serves this purpose. Designed to accelerate the launch of ESG-based products, the API provides access to transparent, well-structured and easy-to-understand ESG datasets that eliminate the need for in-house ESG expertise.

The solution includes advanced filter terminals that further simplify development by eliminating the need to maintain a database.

The XigniteGlobalESG API covers a full universe of public companies domiciled in North America, EMEA, APAC and Latin America. In addition to ESG scores, this API provides Global Compact scores, engagement data, temperature scores, and raw emissions data.

Mary I. Bruner