19 Oct, 2021

Arabesque Launches New Data Solution for SFDR Regulatory Disclosure


  • Arabesque’s SFDR Data Solution simplifies and streamlines the process of reporting against the EU’s Sustainable Finance Disclosure Regulation (SFDR). 
  • Europe’s landmark anti-greenwashing rulebook for the investment industry, the SFDR requires investors to disclose data indicating their funds’ sustainability alignment starting June 30th 2022. 
  • The new digital solution combines company disclosures and Arabesque S-Ray’s proprietary ESG data mapped against the SFDR Principal Adverse Impact (PAI) indicators so clients can easily generate required information on their investment holdings. 

19th October 2021, London – Arabesque, a global leader in ESG data and sustainable intelligence, has today launched a new digital solution to help investors meet the upcoming disclosure requirements of the EU’s Sustainable Finance Disclosure Regulation (SFDR).  

The SFDR, created to promote transparency and a consistent classification among sustainable investment products, is one of several pillars in the EU’s long-term Action Plan on Sustainable Finance. Under the new regulation, asset managers, financial advisers and insurance providers will be required to disclose all funds’ environmental credentials under a specific framework, devised to help categorise products based on 14 mandatory and 33 optional Principal Adverse Impact indicators (PAIs). 

Part of Arabesque’s suite of regulatory data products, the ‘SFDR Data Solution’ is a toolkit developed for asset managers and investment professionals to ingest data needed for SFDR reporting based on the Arabesque S-Ray regulatory methodology.  

The solution maps S-Ray’s suite of proprietary raw data metrics covering more than 4,000 entities to the 47 corporate-level Principal Adverse Impact (PAI) indicators required by the SFDR, resulting in over 120 S-Ray raw sustainability data indicators that can be delivered at an individual entity and portfolio-wide level. Covering all the mandatory SFDR metrics as well as the majority of the opt-in indicators, the tool provides investors with the necessary data points for complete SFDR reporting. 

Arabesque’s new market solution comes as European asset managers prepare for the June 2022 deadline for mandatory SFDR disclosure. Using a combination of raw company disclosures and Arabesque S-Ray’s proprietary ESG data and research, the SFDR Data Solution generates entity-level indicators providing 100% coverage of mandatory PAIs and more than 80% coverage of optional indicators. 

Dr Daniel Klier, President of Arabesque, today said:   

“ESG measurement is now at the forefront of investors’ agendas, and the arrival of the SFDR has shaken up how the asset management industry considers and integrates sustainability into the investment process. However, mandatory disclosure of ESG data is in its infancy, and we know that with this comes a significant challenge for investors, regulators, and other stakeholders in accessing useful, comparable, and consistent information.” 

“Sustainability is increasingly becoming a license to operate. Arabesque’s SFDR Data Solution provides asset managers with robust, accessible, and actionable datasets to address upcoming regulation.” 

The SFDR Data Solution can deliver reporting information either through a raw data feed to be ingested into existing data systems, or as a ready-formatted workbook mapping raw metrics against a portfolio’s relevant mandatory and opt-in PAIs.