Fintech company Broadridge Financial Solutions announced today the launch of a SFDR-focused ESG reporting solution to help asset managers address upcoming compliance requirements and regulatory disclosure obligations.
The EU Sustainable Finance Disclosure Regulation (SFDR) establishes harmonized rules for financial market participants including investors and advisers on transparency regarding the integration of sustainability risks and the consideration of adverse sustainability impacts in their processes and the provision of sustainability‐related information with respect to financial products.
In the upcoming phase of the regulation, set to come into effect in 2023, reporting obligations will include disclosures on the manner in which sustainability risks are integrated into investment decisions, and assessments of the likely impacts of sustainability risks on the returns of financial products, measurement and tracking of KPIs, principal adverse impacts (PAIs) and EU Taxonomy alignment.
Broadridge’s new solution enables disclosure through the European ESG Template (EET), a financial industry-developed standardized template aimed at facilitating compliance with SFDR requirements and easing the exchange of ESG data between financial market participants. According to the company, the solution provides complete support for all aspects of the EET, from financial product composition to maintenance and dissemination.
Paul Poletti-Gadd, Chief Solutions Officer at Broadridge Fund Communication Solutions, said:
“Asset managers are navigating a very complex and changing regulatory landscape and are under increasing pressure to disclose more ESG data to investors. Broadridge’s new ESG solution enables asset managers to efficiently provide data by leveraging automation and existing network links amongst fund distribution channels to ensure they have data and regulatory documents at the right time for their end clients.”