Compliance reporting

ESG/SFDR

Urgent need for action in ESG/SFDR reporting:

The European Union’s Sustainable Finance Disclosure Regulation (SFDR) imposes uniform reporting requirements for sustainability criteria. With the first stage of the regulation, which came into force on March 10, the ESG strategy, characteristics and calculation methods must be demonstrably collected and the principal adverse impacts (PAIs) must be disclosed on the websites and in the sales prospectus.

The industry standard for data exchange will be the European ESG Template (EET). The final version of the format, which comprises around 700 fields, is expected to be available by June 2022; both for disclosing pre-contractual SFDR information and for meeting extended MiFID requirements.

Although the complete effective date of Level 2 has been postponed to January 1, 2023, the first SFDR reference period will start on January 1, 2022.

We therefore strongly recommend adapting your own reporting processes to the new requirements early on – ideally with a holistic, automated data management and reporting solution.

With the acarda platform, everything runs smoothly and efficiently.

The acarda platform allows you to automate the entire process: Collect all ESG metrics for the instruments in your portfolios at product as well as entity level according to regulation. Classify your portfolios with pre-definable rules according to Articles 8 and 9, and thus ensure that the Principal Adverse Impacts (PAI) as well as the ratings of your portfolios are correctly reported. You always have an overview of all key figures and processes via the comprehensive acarda dashboard. to represent.

You can also automatically create pre-contractual and annual reports, update your websites and integrate other systems that need to access aggregated sustainability key figures. The acarda ESG/SFDR module delivers the new fields of MiFID II EMTs, PRIIPs EPTs, Solvency II TPTs and the future ESG-EET exchange format and distributes the data to all desired platforms.

acarda ESG/SFDR - Sustainability reporting and service beyond software.

ESG strategy, data and methods

Collection and measurement

Obtaining ESG raw data (including controversies and scores) for liquid instruments
Waterfall approach: combine vendors and include your own input
Scoring of illiquid products (RE, PE) based on your investments and criteria
Calculation of PAIs at product and entity level
Integration of multiple providers and possibility to include your own research
Combination of different data sources to optimise coverage
Monitoring of PAIs and scores per portfolio or product
Taxonomy eligibility. Support for alignment.

Documents and websites

Additional services

With the acarda SFDR application and our managed service, you benefit from ESG-compliant data, method alignment, all calculations and documents as well as web services from one source.

The services in detail:

Consulting: Complete analysis of your ESG strategy at company and product level, comparison of data providers, definition of front-back processes, regulatory requirements, etc. We support you completely or at specific individual points, depending on how you are already positioned.
ESG data sourcing: Central sourcing of ESG relevant data. We directly connect to your provider(s) (e.g. MSCI, Sustainalytics-Morningstar, Refinitiv). Look-through data collection from asset managers and platforms with regular updates. Additional database integration (Green Bonds, your own research, etc.).
Monitoring ESG data: Mapping of raw and scoring data, classification of missing instruments or issuers by default, tracking of PAI scores, rule-based exclusion or selection, determination of individual scores for illiquid products based on raw data e.g. for debt, real estate and PE funds.
Data standardisation: Alignment (normalisation/alignment) of scoring scales especially for third-party funds/target funds with different ESG data providers; resolution of inconsistencies between different providers/sources.
Calculation and aggregation: Calculation of PAIs and ratings at portfolio level; aggregation of holdings according to SFDR mock-ups.
Compliance and risk management: Constant review of portfolios (e.g. fund holdings and customer investments) for compliance with ESG strategy and SFDR requirements; reconciliation with portfolio management.
Production and distribution: Production of pre-contractual and recurring reports and websites as well as standardised exchange data, e.g. via EMT 3.1, EPT, TPT, EET; support in web design and product description.