Regulatory Data Solutions
The responsible investment landscape is continually evolving due to new standards for disclosure and innovation, and the pace of regulatory change is only expected to increase in years to come. In major jurisdictions all over the world, new bodies of ESG-focused legislation are being contemplated, trialled, or brought into force. Driven by demand from consumers, governments, and the investment community itself, these increasingly complex regulatory initiatives are transforming the way we do business.
However, much of the market is still in the very early stages of adapting its policies and reporting practices, leading to meaningful disclosure gaps. As such, the task of ensuring that “sustainable investments” live up to their name is far from simple, and the same goes for the regulations themselves, which place a significant analytical burden on market participants. Against this backdrop, insightful and reliably-sourced data is the key to both compliance and innovation.
The jurisdiction seeing the most rapid change is the EU, where the EU Sustainable Finance Disclosure Regulation (SFDR) now requires investors to make mandatory ESG disclosures in order to combat greenwashing. Alongside it, the EU Taxonomy regulation has established a science-based classification system for identifying genuinely green activities and practices.
Enabling you to streamline your responses to these evolving regulatory demands, Moody’s ESG Solutions provides purpose-built datasets containing only relevant information for the disclosure requirement in question.
With Moody's ESG Solutions, you can:
Extract accurate insights allowing you to respond to the SFDR and EU Taxonomy’s ESG disclosure requirements
Go beyond compliance – apply our ESG data to identify opportunities, develop labelled funds, indices and benchmarks in accordance with current and emerging standards
Our Comprehensive Offering
What is the SFDR?
What is the EU Taxonomy?
- Detailed: our analysis first identifies which of a company’s activities meet the EU Taxonomy’s eligibility criteria, and then produces both a consolidated view of the company’s overall alignment with the Taxonomy’s specifications, and a breakdown of its alignment activity by activity
- Intuitive: the output for each activity the company is engaged in is expressed as a percentage of turnover/CAPEX/OPEX for easy comparison
- Thorough: we cover the full scope of the regulation, including:
- Determining whether an activity makes a Substantial Contribution to one of the EU Taxonomy’s environmental objectives, such as ‘Climate Change Mitigation’;
- Ensuring that it meets with the requirements falling under Do No Significant Harm (e.g., that the pursuit of that one activity does not significantly harm any of the others, such as protecting our ecosystems);
- And that it is aligned with the Minimum Social Safeguards (e.g., that it respects widely accepted environmental conventions and principles, like those established by the UN and OECD);
We use a hybrid data extraction model to capture the most complete picture of an investee company’s activities. AI flags the most relevant material, and our experienced ESG analysts verify it every step of the way
Data is drawn from corporate reporting, carefully validated news analysis, and direct engagement with companies
All data is referenced to its source with clear definitions and methodologies made accessible to users
Intuitive Excel datasets allow easy assessment and comparison of company disclosure levels and regulatory alignment across your investment universe
Available via SFTP and API