Share page with AddThis

Issues Archive » FundsTech Spring 2022

Roundtable: The digital transformation opportunity

FundsTech – Have regulatory drivers increased demand for better reporting and data?

Stevens  Financial reporting has been there for years, but now non-financial ESG reporting has become mandatory and more complex, as legislation is standardising it and listing a series of requirements.

New EU delegated acts are coming out on average every six months, and then every three years they will be reviewed. In total, we have referenced, so far, 2,500 datapoints in the EU Taxonomy alone.

The goal is to have all concerned players interact with each other. Issuers are taken step by step through the legislation and their existing databases are matched to the reporting template. Once that’s done, we convert the report into data models that financial institutions can access for their own reporting exercise.

FundsTech – What is Euroclear’s approach to this and how do you see the ESG reporting area developing with new technology?

Harper  Our strategy is focused on three pillars: ESG issuance, ESG data and analytics, and ESG market uplift.

For the first pillar, if you digitalise the taxonomy, people can spend time assessing how they can impact and improve sustainability, rather than their energy going into the administrative tasks in the reporting environment. And that has real value.

For reporting, once you begin to create sufficient source data, you have the opportunity to create a network effect, as the data becomes very valuable because the authenticity is high, the granularity is high, and the users of it can then make decisions based on it.

The second pillar is around enabling asset managers to access fact-based objective data, so they can ask what-ifs and determine how they’re going to position their portfolios.

The third pillar focuses on our role with network participants to build an alliance around people who want to change the way the issuance process operates in ESG. Fundamentally, as the number of sustainable securities goes up – and there are around about 7,000 use-of-proceeds bonds today – we think there’s a meaningful opportunity to enhance that.

Most read features

Cryptocurrencies: Solving crypto’s sustainability problem

Cryptocurrencies like bitcoin have a huge carbon footprint but, as Nicholas Pratt discovers, environmentally friendly alternatives exist.

Roundtable: The digital transformation opportunity

FundsTech – Have regulatory drivers increased demand for better reporting and data? Stevens – Financial reporting has been there for years, but now non-financial ESG reporting

Proxy voting: Making every vote count

With stewardship more important than ever and digital technology to the fore, surely it is time to solve the problem of proxy voting? Nicholas Pratt investigates.

Interview: Rise of the robo-adviser

FundsTech talks to Nutmeg’s CTO, Matt Gatrell, about the role of technology in its online offering.

Regulation: Panel calls for simplicity in ESG reporting

The industry accepts the need for more rigour in ESG fund reporting, but the work will be pointless if investors don’t understand the end result. Nicholas Pratt reports.

Sponsored Profiles

Data consolidation takes centre stage in asset management M&A

MergersConsolidation between asset management firms is overwhelmingly expected to increase. Operational challenges remain thanks to legacy systems. But in a recent...

Are you being microserved?

As asset managers grapple with new digital technology, FundsTech talks to Calastone’s Adam Belding about the importance of software architecture and the benefits...

Sponsored profile: A question of trust

AcrobatsAs more firms adopt agile software development practices, Petra Roche of Metrosoft explains why trust is so important in making agility work.

Sponsored feature: Compliance and the case for agility

CheetahFundsTech talks to Janusz Lorenc, CEO of Metrosoft, about asset managers’ approach to compliance risk and the case for agile software development.