Sustainability Report 2022
Marketplace
ESG in our product offering
The development of sustainable finance has been tremendous, both from a regulatory point of view and from a market requirement’s point of view.
The demand to assess environmental, social and governance (ESG) criteria of companies or funds is essential for the industry and obtaining relevant and recent data on ESG criteria is an area where MFEX has widen its offer.
Achievements in 2022
Widened and deepened the dedicated Responsible Investor section in our GFW questionnaire
Offered to assess asset managers from an operational perspective
Further developed our Data Solutions and launched the EET service for MFEX distributors
Goals for 2023 and beyond
Launch the EET service for our asset management clients
Extend the ability for clients to search ESG data through our Market Intelligence “MINT” service
Further develop synergies with companies acquired by the Group to offer deeper ESG services and powerful solutions
The Responsible Investor section in Global Fund Watch
We provide customers access to our Global Fund Watch (GFW) service, a digital onboarding and compliance exchange platform, where financial companies simplify and speed-up their onboarding (KYC) and recertification process with digital tools. Built like a “Compliance LinkedIn”, GFW allows financial companies to access directly updated information and documents from their network of counterparties. The sourcing and sharing of information is controlled by the owners of each profile. A dedicated Responsible Investor section includes an ESG questionnaire and various related documents such as ESG policies. From a compliance perspective, companies can use this tool to assess the ESG capabilities of their clients or providers, which complements their assessment of ESG investment capabilities.
Asset managers assessment
Institutional investors and fund distributors need support with Responsible Investment solutions and ESG investment decisions. Due to both regulation and client demand, they need to ensure that the asset managers they select or invest in are aligned and compliant with their ESG engagements. For more than 12 years, MFEX has been assessing asset managers from an operational perspective and delivering reports with an opinion and a scoring on operational robustness. In order to support our clients, since 2021 we have extended this offering with an integrated ESG module. This enables MFEX users to evaluate fund managers’ actual ESG organisation, governance, and process implementation. In the often-confusing universe of ESG funds and labels, the integrated ODDS (Operational Due Diligence Service) offer uniform analysis and therefore allow for easier comparisons between different asset managers’ ESG claims, benefitting from over 10 years track record on assessing this industry.
EET and Data Solutions Services
Our data Solutions services have enabled us to support our marketplace offering, which collects all regulatory data related to funds’ ESG themes and makes it available to distributors. The data covers both the commitments of fund managers to their investment strategies and ultimately the impact of these strategies. As an example of the data analytics services, MFEXbyEuroclear has started the dissemination of the European ESG Template (EET) to distributors throughout Europe to be ready for the official launch in January 2023. The EET provides a standardised template complying with regulatory requirements from the Regulatory Technical Standards (RTS) under the Sustainable Finance Disclosure Regulation (SFDR) Level 1, applied in Europe. The EET enables asset managers to gather all reporting on the EU taxonomy, SFDR, MiFID and Insurance Distribution Directive (IDD) requirements. MFEX collects EET data directly from asset managers, which ensures that we have data quality and can redistribute it in a transparent and efficient way. When we started collecting MiFID data, the template only had 60 data points in it. Now with EET, we cover over 600 data points, even if not all the data points are populated yet.
