SIX has partnered with Morningstar company Sustainalytics, an ESG and corporate governance, ratings and analytics specialist, to provide its customer base with ESG data to help them comply with new EU sustainability regulations.
Sustainalytics is the first third party specialist ESG data provider to be onboarded by SIX to its distribution channels.
Speaking to The TRADE, Janine Hofer-Witter, senior product manager, financial information at SIX said: “Our strategy on ESG is to be an aggregator as well as a provider or producer of ESG content. For clients that already use SIX data, it’s much easier to consume third party ESG data via SIX as opposed to connecting to third party providers to get that content. Sustainalytics is the first third party specialist to be onboarded by SIX, but our journey does not end here. We really want to be a one-stop-shop for our clients to access ESG data.”
As part of the partnership, SIX will now be able to support clients with their disclosure obligations by providing new extensive data sets for EU Taxonomy and the Sustainable Finance Disclosure Regulation (SFDR) – with the core of the SFDR data set being Principal Adverse Impact Information.
Sustainalytics’ ESG Risk Ratings will also be offered by SIX, which can help firms make more informed investment decisions. Companies’ exposure to industry-specific material ESG risks are measured by these ratings, as well as how well a company is managing those risks.
Alongside aggregating and distributing data, SIX also standardises all ESG data. Data from different providers is made comparable and machine readable and SIX allows the data to be accessible on a company or financial instrument level, offering a more efficient way for data to be ingested for its global customer base.
“Sustainalytics is delighted to work with SIX and provide its clients with our high-quality ESG risk and compliance solutions,” said Tim Langer, director of client relations at Sustainalytics.
“We look forward to advancing our relationship with SIX and supporting their clients’ ESG research and data needs, particularly as elements of the EU Action Plan continue to roll-out.”