ISS ESG, Clarity AI and Sustainalytics data integration reflects Qontigo’s open architecture approach to sustainable investing
NEW YORK, January 11, 2022 – Qontigo, a leading provider of innovative risk, analytics and index solutions has made available ISS ESG, Clarity AI and Sustainalytics data within its financial optimizer, Axioma Portfolio Optimizer (APO). Sustainalytics will also be integrated into Axioma Portfolio Analytics (APA) for performance attribution and reporting as well as Axioma Risk Model Machine (RMM), which allows users to create custom risk models.
With this direct integration into Axioma portfolio construction tools, asset managers, wealth managers and asset owners will be able to construct portfolios actively tilting towards a combination of ESG attributes; identify point-in-time ESG exposures; create desired hedges; develop custom risk models that explain risk and return; and run performance attribution based on ESG attributes.
Using its proprietary Risk Entity Framework, Qontigo is able to consolidate and normalize sustainability-linked content from multiple sources, ensuring consistency across multiple asset classes.
“We know that there’s a great need for sustainability to inform the investment process and so it’s important for us to offer clients a breadth of best-in-class content. Clients running strategies with ESG-linked goals – from climate to impact – may already be working with a number of vendors, but they can now benefit from more seamless data integration with leading analytics tools for portfolio construction, risk and reporting, which could result in lower total cost of ownership.”Chris Sturhahn, Chief Product Officer for Analytics at Qontigo
The forthcoming introduction of sustainability content into Axioma multi-asset class, cloud-native offerings will enable investment managers to also manage their portfolios with respect to a wide spectrum of sustainability-linked investment targets, as well as generate output that helps with sustainability-linked management, investor and regulatory requirements.
“We are pleased to offer our market-leading ESG data through the Axioma Portfolio Optimizer, initially starting with a focus on climate and encompassing emissions data, physical and transitional risk metrics, and scenario data across approximately 28,000 issuers. We are excited by the opportunities this partnership affords mutual clients to access class-leading ESG and risk management solutions through an integrated channel.”Dr. Maximilian Horster, Head of ISS ESG, the responsible investment arm of Institutional Shareholder Services Inc.
“One dimension of bringing societal impact to markets is providing broad, granular and transparent ESG Risk and SDG Impact analysis, and we are excited to bring that to Qontigo and its clients. Instead of applying analysts’ subjective assessments, we leverage science-based methodologies and proprietary machine learning to deliver reliable and objective data at scale with exceptionally broad coverage. As a digital-native provider, we lead the industry in offering a comprehensive range of SaaS solutions for sustainability assessment, and integrating into Axioma Portfolio Optimizer creates the opportunity for us to illuminate paths to a more sustainable world for an even wider base of clients.”Rebeca Minguela, Founder & CEO of Clarity AI, the global, leading sustainability tech platform
“Sustainalytics is delighted to provide Qontigo’s clients with our diverse range of ESG risk and compliance solutions. With ESG issues becoming a more central part of the investment decision-making process, investors can now more easily show the ESG risk attributes of their portfolios and report on them by leveraging Sustainalytics’ rich ESG solutions in Qontigo’s risk and analytics environment. We look forward to building on the success of our relationship with Qontigo and expanding our partnership.”Shila Wattamwar, Global Head of Strategic Partnerships at Sustainalytics
Users of APO, APA and RMM will be able to access:
- ISS ESG Daily Multi-Attribute files covering 2 modules across more than 28,000 entities: Climate Core and Climate Impact
- Clarity AI ESG Risk ratings as well as SDG Impact metrics, with coverage that extends across 30,000 companies, 135,000 funds, 198 countries and 187 local governments
- Sustainalytics Daily Multi-Attribute files covering 7 modules across more than 25,000 entities: ESG Risk Ratings, Product involvement, Controversial Weapons, Global Standards Screening, Corporate Governance and Controversies
Qontigo currently uses ISS ESG and Sustainalytics datasets for the construction of STOXX and DAX indices.
About Qontigo — Optimizing Impact™
Qontigo is a leading global provider of innovative index, analytics and risk solutions that optimize investment impact. As the shift toward sustainable investing accelerates, Qontigo enables its clients—financial-products issuers, asset owners and asset managers—to deliver sophisticated and targeted solutions at scale to meet the increasingly demanding and unique sustainability goals of investors worldwide.
Qontigo’s solutions are enhanced by both our collaborative, customer-centric culture, which allows us to create tailored solutions for our clients, and our open architecture and modern technology that efficiently integrate with our clients’ processes.
Part of the Deutsche Börse Group, Qontigo was created in 2019 through the combination of Axioma, DAX and STOXX. Headquartered in Eschborn, Germany, Qontigo’s global presence includes offices in New York, London, Zug and Hong Kong.
About ISS ESG
As a market leading provider of responsible investment solutions to over 1,100 institutional clients, ISS ESG, the responsible investment arm of Institutional Shareholder Services Inc. (“ISS”), provides a comprehensive range of ESG Data, Research, Analytics and Reporting solutions across a broad range of asset classes, covering over 100,000 issuers across our product range. The services offered by ISS ESG, which include Climate Solutions, Controversy Assessments, Ratings and Rankings, Regulatory solutions, and Impact products, assist institutional investors and financial market participants with integrating ESG data into their investment processes, managing sustainability related risks, and measuring impact holistically.
About Clarity AI
Clarity AI is a sustainability technology platform that uses machine learning and big data to deliver environmental and social insights to investors and organizations. As of December 2021, Clarity AI’s platform analyzes more than 30,000 companies, 135,000 funds, 198 countries and 187 local governments, and delivers data and analytics for investing, corporate research and reporting. Clarity AI has offices in the US and Europe. Clarity AI’s client network manages trillions in assets under management.
Sustainalytics, a Morningstar Company, is a leading ESG research, ratings and data firm that supports investors around the world with the development and implementation of responsible investment strategies. For more than 25 years, the firm has been at the forefront of developing high-quality, innovative solutions to meet the evolving needs of global investors. Today, Sustainalytics works with hundreds of the world’s leading asset managers and pension funds who incorporate ESG and corporate governance information and assessments into their investment processes. Sustainalytics also works with hundreds of companies and their financial intermediaries to help them consider sustainability in policies, practices, and capital projects. With 17 offices globally, Sustainalytics has more than 1,200 staff members, including more than 500 analysts with varied multidisciplinary expertise across more than 40 industry groups. For more information, visit www.sustainalytics.com.