Northern Trust (Nasdaq: NTRS) and Equity Data Science, Inc. announced the launch of an ESG workflow solution that will allow investors “to more quickly access and share ESG information.”
The new ESG digitized data aggregation tool “leverages data science to help increase transparency while enhancing efficiency and collaboration amongst investment teams.”
A lack of clear, industry-accepted standards for ESG data “poses a challenge for investors.” As digitization continues shaping the financial services industry, the ESG workflow solution “can integrate ESG data and analysis directly into the investment process, incorporating feeds from multiple data providers and types.”
Paul Fahey, Head of Investment Data Science at Northern Trust, stated:
“We know that implementing ESG is a top concern for our clients, so EDS and Northern Trust have come together to launch our new ESG workflow solution to provide our clients with a single source for their data. This enables more efficiency and transparency for investment teams and helps clients streamline their data and reporting processes.”
The ESG workflow solution “allows investment teams to analyze and measure decision-making across the investment lifecycle and quickly share and evaluate information as it becomes available.”
Specific features include:
- Automated capture of ESG data from market and specialist vendors, including unstructured data sets that identify potential ESG issues.
- Seamless integration of vended data elements (e.g., notes, commentary) within the system for access to all ESG-related data in a single view.
- Workflow tools that digitize analysts’ processes around gathering, reviewing, and annotating ESG scoring and events, as well as decision points throughout the investment process.
- Analytics and dashboards that allow analysts and portfolio managers to interrogate, visualize, compare, and decompose ESG scores from major vendors for deeper insights into each company’s true ESG profile.
Greg McCall, President of Equity Data Science, remarked:
“The ESG workflow solution helps clients tackle several issues brought on by the complexities of ESG data without altering their processes. This allows investment teams to modernize and integrate their ESG data across the entire investment lifecycle, empowering them to further harness their ESG data.”
According to global investment manager Sanders Capital LLC:
“Northern Trust and EDS brought real insight into how digitization could drive value. Together, we transformed one of our most cumbersome functions into a best practice model for our broader investment process.”
As noted in the update, Equity Data Science (EDS) is “a global investment process management solutions provider with deep domain expertise and modernized technology.”
It empowers fundamental investors “to maximize returns through greater insights and productivity by aggregating data sources and refining workflows to govern investment decisions.”
EDS provides “a fully configurable, measurable, and scalable platform with purpose-built analytics to support the entire investment lifecycle, including idea generation, research management, portfolio construction and analytics, risk management, performance attribution and ESG.”
As mentioned in the announcement, Northern Trust Corporation (Nasdaq: NTRS) is a provider of wealth management, asset servicing, asset management and banking “to corporations, institutions, affluent families and individuals.”
Founded in Chicago in 1889, Northern Trust has “a global presence with offices in 22 U.S. states and Washington, D.C., and across 23 locations in Canada, Europe, the Middle East and the Asia-Pacific region.”