Alveo announces new ESG data management capability to help meet SFDR requirements

London and Amsterdam, 4 May 2021 – Alveo, a leading financial data management solutions provider, announces new environmental, social and governance (ESG) data management functionality.

The new functionality includes an extension of Alveo’s standard industry data model and UI functionality that helps clients understand data quality, data lineage and divergence between third-party ratings.

Driven by regulations such as the EU’s Sustainable Finance Disclosure Regulation (SFDR), the data model now incorporates the data fields required to address the SFDR’s indicators applicable to investments in investee companies, sovereigns and supranationals, and real estate assets. (tables 1,2, and 3 in the Regulatory Technical Standards [RTS]).

Alveo’s business rules allow for completing missing data points based on peer group analysis, converting reporting bases and units of measurement and proxying information based on historical records.

Alveo has also extended its standard library of off-the-shelf connectors with financial data feeds. Alveo’s Ops360 user experience includes dashboards showing the sourcing, processing and completion status of data requirements and insight into data quality metrics and complete lineage to show the provenance of reported data fields. Clients can also use Alveo to integrate multiple sources of ESG data and derive analytics, for example showing the divergence between third-party ratings or the creation of clients’ proprietary ratings.

“ESG is the biggest data management requirement to hit the buy-side for some time,” said Mark Hepsworth, CEO Alveo.  “We see clients requiring access to multiple ESG data sources and increasing volumes of data. At the same time, clients want to manipulate this data and make their own decisions about it and how they present it to their clients.”

“Alveo’s multisource approach to data management is well suited to address ESG data management requirements,” said Neil Sandle, Head of Product Management, Alveo. “With wide dispersion in third party ESG ratings and the need for granular reporting against the SFDR’s PAIs, firms need to combine different sources with their expertise. ESG data is essentially reference data that we have been helping clients manage for many years. In addition, Alveo’s targeted data sourcing and advanced data derivation and distribution capabilities make it the ideal solution to help firms address new ESG requirements“, Sandle concludes.

About Alveo

Alveo is the leader in market data integration and analytics solutions for financial services. Focused on optimizing data flows for business user self-service, we provide cloud-native data aggregation and data quality management that enables clients to access trusted data while maximizing their data ROI easily.

Through our managed services, we ensure that clients can smoothly onboard, prepare and validate data for use in operations, trading, investment management, pricing, risk, reporting and machine learning.

We service a global client base, and our award-winning technology provides easy integration into business user workflows and a proven platform for advanced analytics. Combining deep domain expertise with the latest open-source technologies, we help financial institutions ensure high-quality data, optimize market data cost and maximize productivity.