Our ESG
Regulatory
Solutions

Arabesque is unveiling a range of ESG data
and reporting solutions to help clients meet
growing regulatory demand.

Our Solutions

Arabesque’s data-driven approach is designed to enable clients to integrate robust ESG insights into regulatory reporting

The S-Ray Regulatory Solutions offering is built around the empirical observation that sustainable finance policy and regulations are a 21st century phenomenon and will continue to play a critical role in Arabesque’s data, research, advisory, and asset management businesses.

S-Ray’s regulatory solutions help asset managers, asset owners, and corporates address the increasing demands by regulators – initially focused in the EU but will expand across US, Japan, APAC and other leading jurisdictions.

Arabesque

S-Ray Applied Research &
Regulatory Solutions

Arabesque

Data Product

Raw-level ESG data indicators required by regulation and type of regulated entities; clients can use and integrate in their own reporting obligations and due diligence processes disclosed to regulators

Arabesque

Company-Level Solution

Screen company data disclosures against established regulatory requirements (e.g. NFRD, EU Taxonomy, etc.); identify significant data gaps and disclose missing data; generate reports that provide a heatmap of disclosure levels and data gaps

Arabesque

Portfolio-Level Solution

Screen portfolios for regulated ESG data reporting gaps, identifying ‘red flags’ and areas where the reported data presents key strategic regulatory ESG risks and areas for improvement.

Arabesque

Reporting Product

2-page reports generated dynamically at the company-level or portfolio-level relative to each mandatory regulation; focused on number of requirements, percentage achieved, and peer group analysis

Arabesque

Advisory Solution

Bespoke client regulatory advisory projects, whereby S-Ray works closely together with clients and/or an appointed consulting partner to streamline clients’ ESG data strategies in line with best industry practices and regional regulations

Our Approach: Quantitative, Transparent, Modular

Our solutions are being designed to accommodate different client types, different use cases, and the full spectrum of sustainability investing objectives – reporting, compliance, risk mitigation, alignment with collective societal/political goals. The output from this applied regulatory research will be a raw-level data product (based on established indicators in regulation), scoring product, reporting product, and advisory solutions for corporates. The S-Ray Research Office is accordingly undertaking a workstream focusing on establishing a rules-based and data-driven methodology for ensuring compliance with key regulatory developments regionally and globally, such as the EU Sustainable Finance Taxonomy and SFDR.

Production Deliverables & Solution Architecture

We are currently designing a comprehensive suite of ESG Regulatory and Reporting solutions for both corporate issuers and asset managers who would need to start complying with EU rules as soon as March 2021, along with the upcoming EU Taxonomy reporting requirements that are gradually coming into force.

Our ESG Regulatory solutions are currently in development and include the following:

  • Raw data metrics

    Raw-level ESG data indicators that regulated entities can use and integrate in their own reporting obligations and due diligence processes disclosed to regulators.

  • Company-level & Engagement solution

    We will provide an issuer-level Regulatory reporting solution that enables companies to:

    • Map their current levels of data disclosure against established regulatory requirements (e.g. NFRD, EU Taxonomy, etc.).
    • Identify significant data gaps and disclose missing data.
    • Generate reports that provide a heatmap of disclosure levels and data gaps, enabling companies to remedy any non-compliance and report back to Regulators.
  • Portfolio-level solution

    Screen client portfolios for ESG data reporting gaps, identifying ‘red flags’ and areas where the reported data presents key strategic ESG risks and areas for improvement.

  • Advisory offering

    Bespoke client projects, whereby we work together with clients and an appointed consulting partner to streamline clients’ ESG data strategies in line with best industry practices. This is usually discussed on a case-by-case basis.