Guillaume Heraud, head of marketing and ESG solutions, SGSS, discusses why asset managers are considering accessing raw data.
As part of its coverage of Sibos 2022 in Amsterdam, Funds Europe has reached out to financial experts on key topics at the conference. Read more analysis here.
Asset managers looking to make or offer investments that are ESG friendly often identify data transparency and availability as a significant challenge. What can be done to overcome this?
“Among the asset managers that are impacted most by the challenges to obtaining ESG data are those investing in private markets. They cannot count on data vendors and are obliged to collect data directly from their participation.
“To support this, asset servicers are developing data solutions for their clients, such as producing questionnaires for investee companies to complete. This data is then consolidated in a database which is easily accessible by general partners.
“UCITS fund managers also face data availability issues as it is almost impossible to find one data vendor able to cover the whole portfolio universe. Appointing several providers can also prove too costly. This problem is made even more serious when it comes to transparency of data and associated data methodology.
“Consequently, more and more asset managers are considering accessing raw data, collected directly at corporate levels and applying their proprietary methodology to rate their performances according to the criteria selected in their ESG strategies”.
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