Regulatory Reporting Data Set

Sustainability Simplified

IdealRatings Regulatory Reporting Data Set helps organizations in navigating the dynamic landscape of sustainability regulations and reporting requirements. This comprehensive data set not only facilitates adherence to regulatory standards but also effectively mitigates issues surrounding greenwashing.

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Sustainable Finance Disclosure Regulation (SFDR)

In line with the EU Sustainable Action Plan, the EU Commission enforced its SFDR regulation in 2021. The aim of this Directive is increasing The SFDR aims at increasing transparency in sustainable investment practices. It requires financial market participants and advisors to disclose how sustainability risks are integrated into their processes and products, helping investors make informed decisions.

Key Offerings

Our key offerings in this data set encompass: Principal Adverse Impact (PAI) in addition to Articles 8 & 9 Alignment

Principal Adverse Impact (PAI)

SFDR Level II outlines 70+ indicators as adverse sustainability factors. IdealRatings has mapped these to an initial 100+ in-house indicators distributed across 13 KPIs. These indicators include metric, qualitative, and business involvement data, enabling clients to address both obligatory and voluntary reporting standards effectively.

Articles 8 & 9 Alignment

Article 8: Focuses on investment products promoting environmental or social characteristics. Article 9: Applicable to products with concrete sustainable objectives. IdealRatings has developed a guiding methodology to evaluate the alignment of financial products’ underlying constituents with Articles 8 and 9, leveraging various responsible investment themes and setting proxies for key assessment points.

EU Taxonomy

Among the plans to fulfill its Sustainable Action plan, the European Commission imposed the EU Taxonomy in 2022. This classification system defines environmentally sustainable economic activities.

It sets clear criteria for identifying activities that significantly contribute to climate and environmental goals; while ensuring they do no significant harm to other objectives and comply with minimum safeguards.

Climate change mitigation

Climate change adaptation

Sustainable use and protection of water and marine resources

Transition to a circular economy, waste prevention & recycling

Pollution prevention and control

Protection of healthy ecosystems

Unlock EU Taxonomy Alignment

IdealRatings’ EU Taxonomy Data Set offers an inclusive solution to help companies align with the European Commission’s sustainability-related action plan and reporting requirements.

Our EU Taxonomy Model has been created using the Taxonomy’s guidance encompassing 4 key steps to reach each economic activity’s alignment.

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Taxonomy Eligible

Technical Screening Criteria (TSC)

Do No Significant Harm (DNSH)

Minimum Safeguards

Based on this model, IdealRatings can provide our esteemed clients with:

Percentages Disclosure

Turnover, CAPEX, and OPEX eligibility and alignment percentages. These figures are detailed for each economic activity as well as at the company-wide level.

Performance Assessment

Evaluating companies’ disclosures on TSC, DNSH, and Minimum Safeguards and assigning performance levels of High, Medium, and Low.

Granular Data

Provides raw data elements, for TSC, DNSH, and Minimum Safeguards, upon which performance assessment levels were derived.

European ESG Template (EET)

In 2022, FinDatEx, a collaborative entity comprising members from the European financial services sector, introduced the EET template.

This framework is specifically crafted to streamline the sharing of ESG-related disclosures mandated by the legislative requirements of the European financial markets, particularly for investment funds.

The Template serves as a standardized and machine-readable exchange template for ESG data in accordance with various EU regulations (SFDR, Taxonomy, IDD, and MiFID).

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Empowers organizations to navigate the complex landscape of European sustainability regulations with confidence and clarity, ensuring seamless integration of ESG compliance into business operations.

Out of the 600+ indicators specified in the EET, IdealRatings has identified over 200 indicators as essential data elements to be reported by companies.

The remaining indicators consist of derived data, utilized for portfolio analytics, or company-provided information such as exclusion thresholds and investment strategy details.

Consequently, IdealRatings has primarily focused on the 200+ indicators, which have been mapped to more than 180 unique indicators.

Benefits

Unified Reporting and Compliance

Address overlaps between SFDR, EU Taxonomy, and EET frameworks to streamline ESG reporting.

Principal Adverse Impact Tracking

Monitor and report mandatory PAI indicators to meet SFDR requirements.

Activity Alignment

Evaluate company operations and disclosures against EU Taxonomy environmental objectives.

Regulatory and Internal Reporting

Facilitate comprehensive reporting on sustainability risks and financial metrics like Revenue, CAPEX, and OPEX.

Data Integration

Embed regulatory reporting data into internal systems for operational ease and accuracy.