Sustainalytics Launches Principal Adverse Impact Data Solution for Investor SFDR Requirements
ESG research and ratings provider Sustainalytics announced today the launch of its Principal Adverse Impact (PAI) Data Solution, aimed at helping investors meet reporting requirements under the European Union’s incoming Sustainable Finance Disclosure Regulation (SFDR).
The EU SFDR, which take partial effect on March 10, forms part of the EU’s Action Plan on financing sustainable growth. The regulation establishes harmonised 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, including reporting on how they assess whether portfolio companies comply with global standards, such as the UN Guiding Principles on Business and Human Rights.
Under the new regulations, investment managers will be required to disclose the principal adverse impacts of their investments, outlining how their investments may negatively impact sustainability factors.
Sustainalytics’ new PAI Data Solution is an ESG dataset encompassing both corporate and sovereign-level research. The solution offers investment managers a wide range of indicators and metrics to support their mandatory entity-level PAI reporting as well as product-level periodic reporting.
Anne Schoemaker, Sustainalytics’ Associate Director of Product Strategy and Development, said:
“Given the multifaceted aspects of the SFDR regulation, investors need a holistic, consistent approach to ESG across the entire investment value chain. With Sustainalytics’ PAI Data Solution, investors can count on robust data coverage, trustworthy research, and flexible reporting capabilities to respond to the various regulatory requirements. We look forward to working with investors at every step of their compliance journey.”