S&P Global launches SFDR Sustainable Investment Framework dataset via Xpressfeed™ and Snowflake
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Insights
The launch of S&P Global Sustainable1's SFDR Sustainable Investment Framework represents a significant enhancement in the toolkit available to investment firms for sustainability analysis and reporting. This dataset is poised to become a crucial asset for firms aiming to comply with MiFID II and SFDR regulations, which require the consideration of sustainability factors in investment decisions and the disclosure of related information to clients.
From the perspective of a Sustainability Analyst, the integration of the Good Governance Screen, Do No Significant Harm (DNSH) Screen and Positive Contribution Assessment into a single framework provides a comprehensive and nuanced view of a company's sustainability practices. This is particularly important given the increasing investor demand for ESG (Environmental, Social and Governance) data that goes beyond traditional financial metrics. The coverage of over 19,000 companies globally ensures that the dataset has a broad application, potentially influencing a wide range of investment strategies and decisions.
Furthermore, the use of established S&P datasets in creating this framework suggests a high level of data integrity and reliability. The availability of the dataset via Xpressfeed™ and Snowflake indicates an ease of integration with existing systems, facilitating its adoption by the market.
For a Financial Analyst, the introduction of the S&P Global Sustainable1's SFDR Sustainable Investment Framework can be seen as a response to the growing market demand for ESG investment options. The ability to provide detailed company-level assessments will likely be a differentiator in the attractiveness of investment products, potentially impacting the asset allocation decisions made by institutional and retail investors.
Given the increasing regulatory pressures and the shift towards sustainable investing, this dataset could serve as a competitive advantage for firms that integrate it into their investment analysis and client reporting processes. It could also lead to a re-evaluation of certain stocks or sectors based on their sustainability profiles, which might result in market repositioning and influence stock prices.
Moreover, the dataset's alignment with regulatory requirements may reduce the compliance risks for investment firms, potentially lowering costs associated with regulatory fines or reputational damage. This strategic move by S&P Global Sustainable1 could set a precedent for other market intelligence providers, possibly leading to an industry-wide enhancement in the quality and availability of ESG data.
From a regulatory compliance standpoint, S&P Global Sustainable1's SFDR Sustainable Investment Framework addresses a critical need for investment firms to meet the stringent requirements of MiFID II and SFDR. The dataset's focus on sustainability considerations is particularly relevant in light of the European Union's action plan on financing sustainable growth.
The dataset's provision of a standardized approach to sustainability assessment is likely to simplify the reporting process for firms, ensuring consistency and comparability across the industry. This could help in mitigating the risk of greenwashing, where companies or funds make misleading claims about the sustainability of their investments.
Additionally, the framework's emphasis on governance, harm prevention and positive contributions aligns with global sustainability trends and investor expectations. This alignment not only facilitates regulatory compliance but also supports the broader objective of promoting sustainable finance. By providing clear and actionable data, the framework aids investment firms in navigating the complex landscape of sustainability reporting and in making informed decisions that reflect their clients' sustainability preferences.
The dataset enables market participants to align reporting with MiFID II and SFDR requirements when incorporating sustainability considerations into investment decisions
The newly released dataset, called S&P Global Sustainable1's SFDR Sustainable Investment Framework, is available via Xpressfeed™ and Snowflake, the data-feed solutions from S&P Global's Market Intelligence division.
Steven Bullock, Managing Director, Global Head of Research and Methodology, S&P Global Sustainable 1 commented, "Under MiFID II and SFDR, investment firms are required to take account of client sustainability preferences as well as to consider and report on sustainability performance. Investment Managers are seeking a comprehensive range of data to help meet the requirements under these regulations. We have built the SFDR Sustainable Investment Framework so investors can access a range of high-quality datapoints and identify the sustainability profile of their investments while disclosing results in line with the requirements."
Kelly McGeehan, Head of Sustainability, Broker Research & Investor Relations Solutions at S&P Global Market Intelligence said, "We are committed to providing our clients with the most comprehensive range of data, insights and solutions to meet their sustainability related needs. With the launch of our new dataset which provides detailed company-level assessment, our clients can now understand the sustainability profile of companies in their investment portfolio, and easily align their reporting with MiFID and SFDR requirements."
The screening approach consists of three primary components which form the foundation of the Framework:
- Good Governance Screen: Evaluates the governance practices of companies to ensure they meet sustainability standards.
- Do No Significant Harm (DNSH) Screen: Examines the potential negative impacts of companies on the environment and society through stated EU sustainability objectives.
- Positive Contribution Assessment: Identifies companies that actively contribute to environmental or social objectives.
With coverage of 19,000+ companies globally, S&P Global Sustainable1's SFDR Sustainable Investment Framework leverages established S&P datasets, including the S&P Global Sustainable1 ESG Raw Data, S&P Global Sustainable1 Business Involvement Screens, S&P Global Sustainable1 EU Sustainable Finance Disclosure Regulations (SFDR) Data, and the S&P Global Sustainable 1 Trucost Paris Alignment Data. By aggregating these components, the dataset helps provides a holistic view of sustainability across the entire investment portfolio.
Find details of the dataset here: S&P Global Sustainable1's SFDR Sustainable Investment Framework
Additional useful links: Xpressfeed™, Snowflake, S&P Global Sustainable1 ESG Raw Data, S&P Global Sustainable1 EU Sustainable Finance Disclosure Regulations (SFDR) Data, S&P Global Sustainabl1 Trucost Paris Alignment Data
About S&P Global
S&P Global (NYSE: SPGI) provides essential intelligence. We enable governments, businesses and individuals with the right data, expertise and connected technology so that they can make decisions with conviction. From helping our customers assess new investments to guiding them through ESG and energy transition across supply chains, we unlock new opportunities, solve challenges and accelerate progress for the world.
We are widely sought after by many of the world's leading organizations to provide credit ratings, benchmarks, analytics and workflow solutions in the global capital, commodity and automotive markets. With every one of our offerings, we help the world's leading organizations plan for tomorrow, today. For more information, visit www.spglobal.com.
About S&P Global Sustainable1
S&P Global Sustainable1 is the central source for sustainability intelligence from S&P Global. Sustainable1 matches customers with the ESG products, insights and solutions from across S&P Global's divisions to help meet their unique needs. Our comprehensive coverage across global markets combined with in-depth ESG intelligence provides financial institutions, corporations and governments an unmatched level of clarity and confidence to successfully navigate the transition to a sustainable future. Our data and well-informed point of view on critical topics like energy transition, climate resilience, positive impact and sustainable finance allow us to go deep on the details that define the big picture so customers can make decisions with conviction. To learn more, please visit: www.spglobal.com/esg
Media Contacts:
Sabrina Mayeen
S&P Global
+ 44 (0) 7967 447030,
sabrina.mayeen@spglobal.com
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