ESG Risk reporting

Following this sweep of regulatory reform for ESG disclosure in Asset Management, investment funds and asset managers should look towards efficient and cost-effective solutions to report, monitor, and manage the sustainability risks impacting their range of portfolios. From a regulatory standpoint, Its highly inevitable that the EU will stop here, future developments in regulation, an increase in ESG knowhow in the industry, and advancement in the availability of data will all unequivocally add time-consuming and costly pressures on the manner which a firm can develop their ESG Risk management proficiency and capabilities.      

Integrating ESG Risk into the Risk Management Framework 

On the 30th April 2019, the EU’s securities market regulator, ESMA, formally published technical guidance on proposed amendments to both the UCITS and AIFMD regulatory frameworks in hope of integrating sustainability risk factors into an asset managers risk management policy. Since then, the proposition has been supported with a regulatory change form of the EU taxonomy and EU Disclosure regulation. Subsequently, Asset managers should ensure not only adherence to the compliance and regulatory requirements but formally disclose their policies adopted to incorporate ESG risk in their risk management framework.        

The ESG Regulatory Journey

Since the UN Paris Agreement was signed by world leaders in 2006, universally, regulators and independent bodies representing the interests of economically leading industries and sectors have shifted efforts to reallocate, spend resources, time, and effort in adopting methods that would best enforce the collectively accepted consensus that we must do more for our planet towards mitigating greenhouse-gas-emissions and reducing the rate of climate change.

Nearly half a decade since then, the attention of its underlying significance on the planet has made its way through many industries through measures of ‘best practice’ and ‘company-level disclosures’ in ways that individuals and/or organisations have tried to selflessly drive change and perhaps seek a competitive edge in an era of heightened and growing awareness on the cause. However, enforcing change through what companies ‘should do’ in comparison to what companies will be obliged to do’ through imposing regulatory frameworks and/or guidelines can provide a whole new dimension to administering change.

Capturing ESG Data

At Arkus Financial Services, we have elected to partner with Refinitiv, a leading data provider in financial services, to deliver best-in-class, reliable data and analytics on Environmental, Social, and Governance (ESG) factors, with the promise to effectively supply meaningful portfolio reports and monitoring to our clients on ESG risks surrounding their respective portfolios.

We have chosen to partner with Refinitiv because they offer one of the most comprehensive ESG databases in the industry, covering over 70% of the global market cap, across more than 450 different ESG metrics, with a history dating back to 2002. Among many other beneficial features, the Refinitiv platform assures a high degree of practicality when integrating the relevant data into third-party models, automatically processing the ESG data and scores with ease into the system. Thus, enabling a quick turn-around for Arkus to factor the coherent ESG risks for an asset managers’ portfolio, the resultant reports and portfolio risk analyses will be displayed through our risk monitoring platform, RiskRadar.

Interative risk monitoring

monitoring ESG RISK

At Arkus Financial Services, we have elected to partner with Refinitiv, a leading data provider in financial services, to deliver best-in-class, reliable data and analytics on Environmental, Social, and Governance (ESG) factors, with the promise to effectively supply meaningful portfolio reports and monitoring to our clients on ESG risks surrounding their respective portfolios.

We have chosen to partner with Refinitiv because they offer one of the most comprehensive ESG databases in the industry, covering over 70% of the global market cap, across more than 450 different ESG metrics, with a history dating back to 2002. Among many other beneficial features, the Refinitiv platform assures a high degree of practicality when integrating the relevant data into third-party models, automatically processing the ESG data and scores with ease into the system. Thus, enabling a quick turn-around for Arkus to factor the coherent ESG risks for an asset managers’ portfolio, the resultant reports and portfolio risk analyses will be displayed through our risk monitoring platform, RiskRadar.

Integrating the Sustainable Development Goals (SDG) 

Since we launched in 2003, we have developed unique risk monitoring and data management skills that enable us to create efficient, reliable and high-quality independent  investment risk management reports for a range of investment vehicles and fund structures. Our dedication to quality and service has enabled us to support investment risk functions for major financial institutions across Europe.

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Contact

Business Development

Sergio Lopera

sergio.lopera@arkus-fs.com

+ 44 (0) 207 264 2027

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