ESG Data Analytics Application

Integrated Information. Individual Preferences.

The ESG Data Analytics application is a cloud-based application that mass-customizes investment portfolios to clients’ individual ESG factor preferences. The application’s rigorous data governance and peer behavior feedback loops guide the user’s selection of ESG factors to construct custom investment portfolios. Through peer behavior feedback loops, the ESG Data Analytics app helps support the definition of ESG industry standards across investor types. As a part of an open ecosystem of complementary solutions and designed for ESG investment portfolio managers, research analysts, financial advisors, client reporting teams, securities borrowers, and lenders, the application solves for three key client needs—customization, standardization, and demonstrability.

Features

ESG Data Analytics enables the incorporation of individual ESG preferences in portfolio and policy design. Gain a better understanding of the relationship between ESG ratings across different commercial vendors by viewing your factor preferences against commonly accepted taxonomies, such as the UN Sustainable Development Goals. With dynamic mapping of ESG factors against multiple data sources— third-party, in-house or public—you can structure and review investment portfolios across different measurement regimes.

The lack of widely accepted ESG industry standards intensifies the need of investors to understand peer group behavior. The ESG Data Analytics App's crowdsourcing metrics reveal peer behavior, providing you with a deeper understanding of other investor views of factor relevance, as well as the use of underlying factors as defined by multiple data sources. Moreover, the depth of the BNY Mellon network, coupled with anonymized data usage from institutional asset managers and asset owners, helps begin the establishment of informal standards, while supporting investment policy decisions. This in turn helps improve data quality via a feedback loop to data vendors.

Investors, stakeholders, and regulators expect greater transparency around ESG investing. The ESG Data Analytics App's unique combination of multi-taxonomy mapping, crowdsourced research, and factor analysis enables you—from portfolio design to implementation—to evidence individual client preferences and compare ESG factor implementation across various managers. Upload portfolios and security lists to construct custom investment portfolios, while increasing transparency and demonstrability with better-informed investment processes, such as security selection, portfolio optimization, and proxy voting.

Our Insights


June 2020

ESG 2.0: Crowdsourcing Standards and Mass Customization

More transparency, flexibility and responsiveness to investor needs will yield tremendous gains in advancing ESG standards in a post-pandemic world.

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