Broadridge has launched an environment, social and governance (ESG) advisory service, leveraging its proprietary data to help issuers and asset managers improve their sustainability strategies.
The FinTech provider has partnered with sustainable investment research firm, Third Economy, to help evaluate the sustainable investment efforts of companies.
For the asset management community, sourcing reliable and accurate ESG data has become a priority in order to appease investors and pursue the relevant strategies.
Broadridge said its service will allow benchmarking for ESG efforts to peers and provide industry best practices to identify areas for improvement, along with aligning capabilities with emerging frameworks and standards, such as Sustainability Accounting Standards Board (SASB), Carbon Disclosure Project (CDP) and the Task Force on Climate-Related Financial Disclosures (TCFD).
The two firms will also provide carbon footprints and the ability to set long-term environmental impact reduction goals and help improve ESG ratings.
“Companies are making corporate responsibility initiatives part of their business strategy as more retail and institutional investors raise ESG concerns and seek the long-term performance advantages and benefits of ESG-focused businesses,” said Dorothy Flynn, president of corporate issuer solutions at Broadridge.
“Investors and other stakeholders are increasingly looking at ESG disclosures as a fundamental expectation, driving the need for additional connectivity between companies, investors and other stakeholders.”
ESG data and analytics has become big business for service, data and FinTech providers. In November 2020, Deutsche Boerse announced it would be purchasing ESG data and analytics provider ISS for $2.2 billion.