Linedata has teamed up with Arabesque S-Ray to integrate Environmental, Social, and Governance (ESG) data into asset managers’ workflows.
The move, which feeds a range of ESG data assets directly into Linedata’s software, will enable managers to cater to the increasing demands from regulators and investors for better transparency over ESG funds.
It will also help them offer a competitive edge through sustainable positioning and differentiated product offerings.
Linedata global head of asset management Gary Brackenridge said: “Linedata is committed to helping market participants to make more and better ESG driven decisions. With sustainable fund assets hitting a record $1.7trn in 20201, asset managers recognise ethical and sustainable funds as a major growth opportunity.”
Utilising machine learning, Arabesque S-Ray’s quantitative data tool crunches the sustainability performance of more than 8,000 of listed companies, and directly integrates it with Linedata’s portfolio and order management solutions.
Arabesque Group chairman Georg Kell said: “We believe economic value creation can go hand in hand with environmental stewardship, social inclusion, and sound governance.
“Our agreement with Linedata empowers more asset managers to make better decisions for a sustainable future.”
Brackenridge added: “The combination of Arabesque’s market-leading ESG data seamlessly integrated into Linedata’s cloud-based portfolio workflows with a unique usage model fits with what we know clients are looking for: commercial flexibility, high-value content and excellent user experience.”
The ability to utilise independently validated ESG scores help the companies organise and enhance the development of ethical, sustainable and funds.
It will also enable them to score, rebalance, and create new ESG portfolio strategies, products, and workflows.
They will be able to integrate ESG factors into pre- and post-trade Compliance at asset and fund level.
In addition, the companies can manage regulatory and investor transparency and reporting with dashboards, screening, and monitoring tools.
Linedata is offering the new capability to its clients in Asia, Europe, and North America.
Last October, the company launched a new asset management platform, dubbed Linedata AMP, to offer asset managers easy access to software, data, and services.