Finastra has partnered with Alygne to provide customised environment, social and governance alternative data, to help asset managers globally make more informed ESG investments.
The companies said a new connector seamlessly integrates Alygne’s data into Fusion Invest, allowing users to leverage the portfolio management capabilities of the solution to ensure portfolios support their ESG-related values.
“Making investments that coincide with corporate and customer values is front of mind for asset managers, but a lack of access to data and metrics makes this challenging,” said Fabien Féron, senior product manager – Fusion Invest at Finastra.
He added, “In addition to using traditional financial metrics to monitor their portfolios, our customers can strengthen their decision-making process by accessing Alygne’s tailored ESG data through our solution. They can easily check the impact of trade simulations for both public and private markets.”
Fusion Invest has an integrated platform that covers the entire investment value chain, delivering portfolio insight and automated processes with a real-time Investment Book of Records and multi-GAAP accounting book of records (IBOR and ABOR).
It features advanced analytics, comprehensive asset class coverage, and open technology via digital dashboarding and APIs.
Alygne is a sustainability technology platform which quantifies ESG scores of multiple facets using natural language processing and machine learning to read global news, social posts and corporate announcements.
The company operates alongside metrics used in global reporting frameworks, such as Sustainable Finance Disclosure Regulation (SFDR) and Sustainability Accounting Standards Board (SASB) standards.
The announcement follows Finastra’s launch of an open and scalable ESG Service that facilitates the integration of sustainability performance target criteria into ESG pricing for both Finastra Loan IQ and other back-office systems in the market.
The cloud-native SaaS solution streamlines sustainability-linked lending, which utilises complex pricing structures with multiple moving parts that need to be tracked against the sustainability targets outlined in the credit agreement.
By providing an automated solution for managing the KPIs and ESG pricing changes of sustainability-linked loans, Finstra’s ESG Service aims to enable banks to grow these lending portfolios efficiently at scale and minimizes the risks tied to manual processes.
According to Finastra, transaction volumes for sustainability-linked loans have increased considerably in recent years as part of a broader push towards ESG-focused financing. ESG financing totaled $1.6 trillion in 2021.
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