Risk, analytics, and index solutions provider Qontigo announced today it has added a series of ESG risk assessment and ratings tools to its Axioma suite of portfolio construction and analytics solutions, integrating data from providers including ISS ESG, Clarity AI and Sustainalytics.

According to Qontigo, this direct integration into Axioma portfolio construction tools will enable asset managers, wealth managers, and asset owners to construct portfolios tilting towards a combination of ESG attributes, identify point-in-time ESG exposures, create desired hedges, develop custom risk models that explain risk and return, and run performance attribution based on ESG attributes. With the introduction of sustainability content into Axioma multi-asset class, cloud-native offerings, Qontigo aims to help investment managers to manage their portfolios with respect to a spectrum of sustainability-linked investment targets, and to generate output that helps with sustainability-linked management, investor, and regulatory requirements.

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Chris Sturhahn, Chief Product Officer for Analytics at Qontigo, said:

“We know that there’s a great need for sustainability to inform the investment process and so it’s important for us to offer clients a breadth of best-in-class content. Clients running strategies with ESG-linked goals – from climate to impact – may already be working with a number of vendors, but they can now benefit from more seamless data integration with leading analytics tools for portfolio construction, risk and reporting, which could result in lower total cost of ownership.”

Qontigo will add data from ISS ESG, Clarity AI and Sustainalytics into its Axioma Portfolio Optimizer (APO) solution, and Sustainalytics data into Axioma Portfolio Analytics (APA) performance attribution and reporting as well as Axioma Risk Model Machine (RMM) customer risk model solutions.

Dr. Maximilian Horster, Head of ISS ESG, said:

“We are pleased to offer our market-leading ESG data through the Axioma Portfolio Optimizer, initially starting with a focus on climate and encompassing emissions data, physical and transitional risk metrics, and scenario data across approximately 28,000 issuers. We are excited by the opportunities this partnership affords mutual clients to access class-leading ESG and risk management solutions through an integrated channel.”

Shila Wattamwar, Global Head of Strategic Partnerships at Sustainalytics, said:

“Sustainalytics is delighted to provide Qontigo’s clients with our diverse range of ESG risk and compliance solutions. With ESG issues becoming a more central part of the investment decision-making process, investors can now more easily show the ESG risk attributes of their portfolios and report on them by leveraging Sustainalytics’ rich ESG solutions in Qontigo’s risk and analytics environment. We look forward to building on the success of our relationship with Qontigo and expanding our partnership.”

Rebeca Minguela, Founder & CEO of Clarity AI, added:

“One dimension of bringing societal impact to markets is providing broad, granular and transparent ESG Risk and SDG Impact analysis, and we are excited to bring that to Qontigo and its clients. Instead of applying analysts’ subjective assessments, we leverage science-based methodologies and proprietary machine learning to deliver reliable and objective data at scale with exceptionally broad coverage. As a digital-native provider, we lead the industry in offering a comprehensive range of SaaS solutions for sustainability assessment, and integrating into Axioma Portfolio Optimizer creates the opportunity for us to illuminate paths to a more sustainable world for an even wider base of clients.”