Major Global Bank Expands Relationship with Adenza to Include Environmental, Social and Governance (ESG) Reporting

Adenza, the new company formed by the merger of Calypso Technology and AxiomSL, today announced an expansion of its relationship with a major global bank to include its AxiomSL ESG reporting solution. The bank, which has been a longtime user of Adenza’s capital and liquidity risk calculation and reporting solutions throughout the U.S. and Europe, will leverage Adenza’s AxiomSL ESG solution to meet new sustainability and social impact reporting requirements introduced by the European Banking Authority (EBA) under its Implementing Technical Standards (ITS) Pillar III policy framework.

The EBA has led the way on ESG reporting requirements for financial institutions with its proposed draft technical standards, which provide a framework for disclosing how climate change may exacerbate other risks within institutions’ balance sheets, how institutions are mitigating those risks, and their green asset ratio on exposures financing taxonomy-aligned activities, such as those consistent with the Paris agreement goals. These disclosure requirements are expected to be applicable starting in June 2022. In addition, the European Securities and Markets Authority (ESMA) has also begun to develop a taxonomy for financial institution ESG reporting, and other geographies around the world are expected to introduce similar requirements over the next 6-12 months. Asset managers will also be subject to new ESG regulations as well, such as the Sustainable Finance Disclosure Regulation (SFDR) implemented in the EU this past March. Adenza’s AxiomSL ESG reporting solution was designed to help all financial institutions meet these requirements by consistently and accurately disclosing their climate-related exposures in addition to traditional financial risk data.

Accurate, timely and consistent ESG risk calculations and reporting capabilities have become a mission critical capability for financial institutions around the globe as virtually every major regulatory authority starts to introduce new sustainability and social impact standards. ESG regulation is still in its early stages and will continue to adapt constantly, so financial institutions need a solution that will grow with them as compliance requirements change. What sets our solution apart is the ability to seamlessly integrate ESG reporting with existing risk and regulatory reporting functions, using a common data dictionary that brings complete transparency and efficiency to a process that would be impossible to manage manually.

- Ed Probst, Head of Strategy Regulatory Solutions Adenza

The ESG reporting solution is part of Adenza’s AxiomSL ControllerView® data integrity, data lineage and control platform, which allows institutions to seamlessly embed risk models, ingest external model results, add source data, and transform disparate data points into a Basel-driven data dictionary that supports advanced regulatory calculations, reporting, and submission from a single source. Able to ingest proprietary, bank-reported and third-party ESG data from all major data vendors, Adenza’s AxiomSL ESG solution reduces that information down to granular data attributes that can be tagged with reference data required for regulatory disclosure.

The Adenza platform also makes it possible for ESG calculation and reporting capabilities to be seamlessly integrated into existing risk and regulatory systems and processes, creating a single, connected workflow. By integrating these individual ESG attributes with existing financial data in a common data dictionary, the solution makes it possible to automate ESG risk disclosures using an appropriate methodology that ensures both accuracy and consistency. In addition to fulfilling regulators’ disclosure requirements, this consistent data flow also makes it possible for institutions to continually benchmark their progress against stated sustainability and social impact improvement goals.

 

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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