Investment and financial services and software provider SS&C Technologies announced the launch of a new ESG reporting solutions platform, aimed at enabling asset managers to monitor and report on the ESG exposure of their portfolios.

The new launch comes as asset managers are facing rising demands from investors and regulators for transparency into the ESG risks of their portfolios, including the recently launched EU Sustainable Finance Disclosure Requirements (SFDR). The SFDR establishes harmonised rules for financial market participants, including requirements to disclose the principal adverse impacts (PAI) that investment decisions have on sustainability factors, based on a list of indicators encompassing climate and environment, as well as social and employee matters, respect for human rights, anti-corruption and anti-bribery aspects. According to SS&C, the new platform will support compliance with the EU SFDR and deliver greater insights and transparency into ESG portfolio risks.

Mike Megaw, Managing Director, SS&C Regulatory Services, said:

“The market and regulators increasingly recognize that ESG factors can affect risk and return, and companies are facing increasing pressure to bring more transparency to this space. Our vendor-agnostic ESG solution platform ensures that managers and investors alike can easily access ESG information to make better decisions about their investments.”

SS&C stated that it partnered with ESG research, ratings and data provider Sustainalytics to create investor transparency, carbon risk and sensitive sector exposure disclosure reports, with the platform scanning asset managers’ underlying data against Sustainalytics’ ESG dataset based on the metrics that apply to the fund’s objectives, frequency, design and format to satisfy investor and regulatory requirements.

Tim Langer, Director of Client Relations at Sustainalytics, said:

“We see the growing manager and investor demand to incorporate ESG metrics into client reporting at the manager and portfolio level. SS&C’s solution provides accurate and detailed ESG rating data which is a game-changer to help investors understand sustainable investing and ESG exposures.”