French financial operators have a regulatory obligation to communicate how they fulfill ESG (Environmental, Social and Governance) criteria into their investment policies and to evaluate the carbon footprint of their portfolios. CACEIS has developed a turnkey reporting solution for its clients internationally.
At the origin of governments and annual Conferences of the Parties (COPs), the international community has made a concerted effort over the last few years to ensure that the concept of corporate social responsibility (CSR) penetrates as deep as possible into its economic and social fabric.
Through the french Law on Energy Transition for Green Growth (Energy Transition Law), France took the lead in 2015 and became the first country to require companies to report to investors on how they manage climate risk and incorporate ESG criteria. This legislative push has now spread well beyond France and is becoming a key issue for international financial entities.
ESSENTIAL NON-FINANCIAL DISCLOSURE
There is an increasing demand from asset management companies and institutional investors for non-financial data and ratings, which requires the CSR/ESG rating market to be better structured. Producing suitable ESG data means not only that fund managers and institutional investors can fulfil their regulatory requirements, but also that these obligations can be turned into a genuine competitive advantage. End investors are increasingly conscious of the ESG impact of their investments.
“This means that any asset managers and institutional investors who fail to produce this information may eventually incur more than just reputational risk. On top of the regulatory aspect, ignoring or dispensing with CSR/ESG data means missing out on real opportunities for growth”, explains Aude Donnève, Group Product Manager at CACEIS.
CACEIS'S REPORTING SERVICE
In anticipation of the growing demand from financial operators, CACEIS has developed a solution for providing essential CSR/ESG data to its clients.
CACEIS’s service involves collecting data and providing it to institutional investors and asset managers in a clear and exhaustive manner so they can assess the ESG credentials of their investments. By way of example, indicators include scores for “scope 1” and “2” (and “scope 3” if necessary) carbon emissions, carbon risk analysis, energy transition strategy interests and performance, and exposure to controversial activities and issuers.
In order to provide the best possible ESG reporting service, CACEIS has teamed up with specialised partner Vigeo Eiris. This French expert in CSR/ESG data production and analysis is an independent body as mandated by the article 173 of the Energy Transition Law (LTECV).
CACEIS’s reporting solutions are available to subscribers via the OLIS platform. An ESG Report menu has been set up to allow asset managers and institutional investors to request reports online, monitor all current and previous requests, and download the reports.
The offering is available to all CACEIS clients, management companies and institutional investors in France and abroad.
“This new solution allows our clients, wherever they are located, to benefit from portfolio analysis that incorporates non-financial aspects and to identify the best and worst-rated issuers. They can therefore adapt their investment strategies to improve their environmental and social impact, thereby attracting new clients”, Aude Donnève concludes.