With more and more of your clients demonstrating an interest in sustainable investing1, it’s becoming increasingly important to have access to the necessary data, in order to make an investment decision aligned with their objectives and values.
To help address this, we’re introducing even more ESG-related data into FE Analytics, to enable you to view and further evaluate the ESG credentials of a particular fund, at the point of investment research.
We’re able to provide this information by extracting fields from a fund’s European ESG Template (EET). This is the official FinDatEx template for ESG-related data, which standardises as well as facilitates the exchange of ESG fund and regulatory data amongst market participants.
By identifying what we believe to be the key fields within an EET and extracting its data from nearly 100,000 of them, we’re able to provide access to additional ESG-related data, which will help you evaluate and better understand the ESG credentials of a particular fund.
Plus, your clients will likely have differing views, preferences and priorities when it comes to sustainability. The range of ESG-related data which is now available will also help you make an investment decision which is aligned with your clients' specific criteria.
The key fields which we have identified within the EET and therefore included within FE Analytics are:
- PRI / PRB Signatory
- Subsidiary of a PRI / PRB compliant company
- Aim to follow PRI / PRB but not a signatory
- Provider Commitments
- ESG Label(s)
- Exclusions
- Main ESG Focus
- Stewardship and Engagement Information
- SFDR Product Type
- Considers PAI in Investment
- Minimum SFDR Article 8 Funds
- Minimum SFDR Article 9 Funds
Download the 'Responsible Investing Indicators' document to find out more about each field.
How to view European ESG Template (EET) data:
The EET data we extract will be made available to you within a fund's Factsheet, and will be clearly displayed under a brand-new section called ‘Responsible Investing Indicators’. We will also be automatically updating the data to reflect any changes.
The amount of ESG-related data which is included within a Factsheet will vary from fund to fund. For example, a fund with good coverage will have likely completed the EET fields we account for, whereas one with limited coverage may not have disclosed information within their EET.
You can also use the ‘Fund Filter’ tool to start filtering funds based on EET data. At the moment, you’ll be able to filter based on a fund’s SFDR classification (articles 6, 8 and 9), which will help identify suitable funds based on your clients' sustainability preferences.
However, we will be enhancing this functionality to enable filtering based on a rage of items, such as a fund’s ‘Responsible Investing Commitments’ or ‘Disclosed Exclusions’. This will then help you identify suitable funds based on your clients' specific criteria.
Additional ESG-related features:
As mentioned, we'll be enhancing the ‘Fund Filter’ tool to account for more EET data, such as a fund’s ‘Responsible Investing Commitments’ or ‘Disclosed Exclusions’. This will really help you identify funds which are aligned with your clients’ sustainability preferences.
This functionality will work well alongside the Sustainable Investing Questionnaire from CashCalc, which has been specifically designed to help you gain an initial understanding of your clients’ sustainability preferences.
We will also be introducing several more 3rd party ESG ratings into FE Analytics, to help provide you with an indication of the ESG performance of a fund. In addition to introducing ratings from ISS earlier this summer, we've also added ratings from Climetrics.
As always, if you have any thoughts or ideas for improvement, please don’t hesitate to let us know. And if you would like to find out more about EET data within FE Analytics or any of our upcoming features, please don't hesitate to get in touch.