COPENHAGEN 4 April 2023 – SimCorp announces that it has entered a partnership with Matter to provide institutional investors a granular, transparent view of the extent to which their portfolios are aligned – or misaligned – with the United Nations Sustainable Development Goals (SDGs).
The portfolio alignment analysis is based on Matter’s SDG Fundamentals framework. The framework measures how the revenue a company generates is aligned or misaligned with the achievements of the 17 SDGs.
“Institutional investors are increasingly focused on the ability to quantify and monitor the societal impact of their investments in real-time, with SDG alignment becoming an industry standard,”
says Carl Balslev Clausen, Director and Head of ESG Product Management at SimCorp.
“Matter’s SDG alignment framework is very comprehensive, and we are delighted to incorporate Matter’s dataset into our ESG and sustainable investment solutions,” Balslev Clausen continues.
The new partnership enables common SimCorp and Matter clients to improve impact monitoring and reporting, as well as identify new investment opportunities, through Matter’s sustainability insights related to the UN SDGs, and over time also EU Sustainable Financial Disclosure Regulation (SFDR) and EU Taxonomy.
This new workflow supports the SimCorp Integration Model (SIM) which will allow common clients to make better informed investment decisions using a clearer picture of their capital allocations from a sustainability point-of-view.
“Our clients acknowledge that optimizing for sustainability is a wicked problem, requiring transparent and granular data integrated into the portfolio and investment management platforms where they are making their everyday investment decisions,”
says Niels Fibæk-Jensen, CEO and co-founder of Matter.
“We are delighted to work with a market leader like SimCorp to deliver more deeply integrated and efficient tools to clients.”
Matter SDG datasets assist investors in enriching their approach to sustainability analysis in four ways:
- – Integration: helping investors identify sustainable thematic head- and tail-winds to inform their investment decision-making;
- – Regulatory compliance under SFDR and MiFID II to inform ‘sustainable investment’ determination;
- – Stewardship and exclusion purposes: helping investors to identify revenues misaligned to sustainable themes; and
- – Portfolio construction and reporting for thematic and impact funds.
