Global fund data and technology company FE fundinfo has expanded the range of ESG data it provides to MSCI and its clients.
Through the agreement, MSCI will “gain access to FE fundinfo’s full universe of European ESG Template (EET) data.” EET data plays “a critical role for financial market participants.”
The EET is an industry template “used by asset managers, asset owners and financial advisers to comply with various European regulations such as the Sustainable Finance Disclosure Regulation (SFDR), Markets in Financial Instruments Directive (MiFID II) and the Insurance Distribution Directive (IDD).”
The collaboration will “give MSCI’s ESG and Climate clients the ability to pair FE fundinfo’s whole of market EET data with MSCI’s ESG Fund Ratings dataset, creating a comprehensive view of funds from across the market.” The flow of ESG data between market participants within the asset management industry, “particularly between fund manufacturers and distributors, but also between data and technology providers, is critical to deliver on investor expectations for transparency and meet distributor’s MiFID II and IDD obligations in Europe.”
Philipp Portmann, Head of Business Development and Strategy at FE fundinfo, said:
“ESG regulations are fast evolving, and with the first deadline for SFDR pre-contractual reports quickly approaching for fund manufacturers and asset owners on 1 January 2023, the need for quality whole of market ESG-related data is critical to transmit clear and transparent reporting for investors in the market. We are ideally positioned being able to provide end-to-end support from data collection, right through to the dissemination of accurate and timely EET data.
There’s a long way to go “before standardized disclosures and integrating sustainability factors at an entity, service and product level are the norm for the industry.” However this agreement sets a great example of “how the coming together of market participants can bring about greater investor transparency through the democratization of data, easing accessibility and streamlining distribution.”
As noted in the update:
“MSCI shares our commitment in supporting investors to make better informed decisions, and we are pleased to support this with greater access to critical investment information.”
Eric Moen, Managing Director, Head of ESG and Climate at MSCI, said:
“As part of our continuous effort to help clients address sustainability-related disclosure requirements, we are pleased to make FE fundinfo’s data available to our clients as they navigate the EU’s MiFID II and IDD. FE fundinfo’s extensive coverage of EET data will supplement our EU Sustainable Finance solutions, enabling investors to address their disclosure requirements and make better informed decisions as they build portfolios.”