Sustainable finance technology provider Arabesque announced the launch of ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. More Regulatory Resource hub, aiming to provide clarity on what new ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. More disclosure rules mean Europe’s financial market participants.
Featured on the company’s website, the new guide was established in response to the EU’s Sustainable Finance Disclosure Regulation (SFDR), which came into effect on March 10th. Arabesque stated that the launch comes as it looks to build a new range of data and reporting solutions to meet growing EU regulatory requirements and increasing client demand.
The EU SFDR forms part of the EU’s Action Plan on financing sustainable growth. The regulation establishes harmonised rules for financial market participants including investors and advisers on transparency regarding the integration of sustainability risks and the consideration of adverse sustainability impacts in their processes and the provision of sustainability‐related information with respect to financial products.
Disclosures mandated under the new regulations for financial markets players include reporting on the manner in which sustainability risks are integrated their into investment decisions, and assessments of the likely impacts of sustainability risks on the returns of financial products.
According to Arabesque, the new resource hub provides users with information on with the rapid rise of new laws across 50 economies and what is driving them, alongside a detailed breakdown of the EU’s Action Plan on Sustainable Finance and what it means for businesses.
Ulrika Hasselgren, Arabesque’s head of Nordics, said:
“New regulations are transforming the sustainability data landscape and financial market participants are facing up to a new reality: ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. More disclosure is no longer a ‘nice to have’, it is becoming a must have.
“This ever-growing complexity of data and reporting requirements shows the value of real insight, alongside technology based, scalable data solutions enabling financial market players to easily collect, analyse and integrate sustainability information in everything they do.”
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