BNY Mellon has launched a range of reporting tools to enable clients to track their portfolio investments based on environmental, social and governance (ESG) issues and United Nations Global Compact (UNGC) principles.
Clients of BNY Mellon will be able to view their total ESG and UNGC scores on equities at the account level versus relevant benchmarks over time.
They will also have the ability to view the ESG and UNGC scores at the company-level, providing an assessment of their sustainability, it was revealed.
According to BNY Mellon, an increasing number of institutional investors are exploring how ESG and other types of sustainability data can help them fine-tune their risk management practices and investment decisions.
Additionally, the demand for ESG scoring is increasing as ESG-related regulatory requirements went into effect starting in January this year.
Fraser Priestley, managing director of Global Risk Solutions in Europe Middle East and Africa at BNY Mellon, said: "We are pleased to offer this service at a time when institutional investors are demonstrating significant interest in incorporating ESG analysis into their investments process.”
“This new service expands upon our existing post-trade compliance monitoring service, which enables clients to screen and track their investments based on social and ethical factors."
He added: "We believe our new service around ESG metrics will be particularly helpful to a number of European pensions who, under a directive known as the European Union's Directive on Pensions, are required to disclose the relevance and materiality of ESG factors and how they are taken into account for risk management processes."
