Release 24.07 ESG

Onboard any ESG KPI in the powerful EBOR engine

Achieve More with Custom ESG KPIs 

We are transforming our ESG Book of Records (EBOR) with a new powerful engine that offers accelerated performance with massive workloads. With 24.07 you can now onboard your own custom ESG KPIs within the new EBOR engine. This enhancement allows you not only to leverage the accelerated performance of the new engine with your own KPIs, but it also makes it easier than ever to configure and onboard new ESG KPIs. This is possible with the newly introduced Domain Specific Language (DSL) that allows you to specify the ESG KPI business logic and its methods in high level business terms. The DSL encapsulates several key methods, the most important being:  

Enhanced Calculation Logic 

Our enhanced calculation logic supports four basic math operations, parentheses, and allows the use of as many FlexPI data points as you want along with constants. 

Eligibility Specification 

You can now simply specify the holding or instrument segment for which the analytic should apply. 

Simplified Fall-Back Mechanism 

We’ve simplified the fall-back mechanism. Just specify “Security, Issuer” or the other way around, and the engine does the work. 

Handling Missing Data 

You can choose to treat missing FlexPI data as null, which results in the whole analytic becoming null and showing null in consuming applications such as the Asset Manager, or to treat missing data as zero and effectively turn any null into 0 and use it as such. 

Position Aggregation

You can aggregate your analytic results across positions in two ways: a) simple summation to add up all results or b) weighted average based on position value. 

Benefits 

• High-Level Domain Specific Language (DSL) that simplifies business logic definition, letting you concentrate on goals while we handle the complex calculations.
• Import your analytics with just a click and have them instantly available system-wide
• Your own KPIs now with accelerated performance over massive workloads

 

Images / Examples

For example, this is how one of the more complex analytics can look like. This allows you to calculate financed emissions taking into account your ownership fraction (or attribution factor). 

Once you have configured the analytics, simply import it by clicking on “Import from XML file” in the “Flexible Analytics Configuration Options” windows.

And then it is instantly available in the Asset Manager (screenshot below) or Aggregation Calculation for the reporting flow.

 

Subscription based licensing

ESG Investing

Sales module dependency

ESG Investing

Release 24.04 ESG

Modifying ESG reference date for ex-post, ex-ante, and custom views 

Any ESG analytics is based on a combination of ESG data and position information. The ESG Book of Record carefully selects the ESG data relevant for the analysis date based on the business logic encoded for the specific ESG data point and combines this data point with the position information at the same analysis date. It is now possible to modify the date from which the ESG data is derived. This gives an extra dimension of flexibility in the views and results that are delivered by the EBOR. 

The flexibility is available for ESG analytics created via the Flexible Analytics Calculation Service which was made available with SimCorp Dimension release version 24.01. 

To modify the reference date of the ESG date point in the Asset Manager, set the relative or absolute date in the “options” menu as indicated in the figure below. Similarly, fields are available in the middle office calculation manager and relevant batch jobs.

Benefits

• Test ESG compliance rules on portfolio with anticipated future ESG data, i.e., ESG data with time stamps on a future date. 
• Create ex-post ESG views and reports for portfolios with ESG data that were not known throughout the report period.

Subscription based licensing

ESG Investing

Sales module dependency

ESG Investing

 

Flexible Analytics Configuration Options: Your Key to Unleashing the Power of Customization 

Introducing NFRD – Flexible Analytics Configuration Options: Your Key to Unleashing the Power of Customization

In the ever-evolving landscape of EU ESG regulations, interpretations vary as to how should one calculate the KPIs under the Disclosures Delegated Act (DDA) that companies in scope of the Non-Financial Reporting Directive (NFRD) need to report on. Influenced by auditors, data providers, and competent national authorities within the EU, these variations can be a challenge. But what if you could navigate this complexity with ease?

Enter our new feature, the NFRD – Flexible Analytics Configuration Options. This powerful tool encapsulates all variations of NFRD analytics calculations, offering them as user-friendly, out-of-the-box configuration options.

With this feature, you can effortlessly customize:

• The position value used for calculations, previously available under the Flexible Analytics Onboarding window.
• The treatment of certain positions, whether to mutually exclude them or count them under multiple KPIs.
• The handling of missing data under certain KPIs.
• The calculation of the “eligible, not aligned” KPIs in Annex IV and Annex X of the Disclosure Delegated Act.
• The management of short positions.

Benefits

• Simplicity: Switch between different types of calculations with ease. This one-off exercise applies to all analytics in the package.
• Future-Proof: Stay ahead of the curve. Anticipate changes in vendors’ methodology, auditors’ interpretation, and regulators’ guidance.
• Embrace the future of NFRD analytics. Experience the power of customization like never before with NFRD – Flexible Analytics Configuration Options.

 

Various configuration options under the NFRD package. If not changed, these are default options.

Subscription based licensing

ESG Investing

Sales module dependency

ESG Investing 

Release 24.01 - ESG

 

ESG enhancements

Faster, stronger, better EBOR 

The number of relevant ESG analytics as well as the complexity of some of these ESG analytics, continue to grow. For this reason, we introduce a calculation service dedicated to ESG, which makes it possible to swiftly handle very large ESG calculations and enables a wider set of analytics. 

When you activate the calculation service, a significantly greater number of ESG KPIs can be integrated in the online front office environment without additional hardware requirements. The reporting business processes for ESG are similarly accelerated with shorter calculation times and reduced memory footprint as a result. Even faster reporting processes is enabled via optional, automated scale-out to multiple calculation servers. 

With the ESG calculation server, more data from IBOR and ABOR is immediately accessible, which enables more complex ESG analytics. First benefit is that SimCorp’s solutions for EU Taxonomy article 8 reporting, sometimes referred to as NFRD-TR, are updated to be based on either market values or book values, where the latter is preferred in some regional jurisdictions of EU.

The new calculation service is rolled out in phases. The first iteration includes support for the NFRD-TR solutions. The next iterations will expand the usage to other standard solutions as well as free-form custom ESG KPIs that users define based on their own proprietary standards.

Benefits

• Decrease hardware requirements with activation of calculation service 
• Significantly reduce calculation times for reporting needs
• Enable use of book value scaling in Taxonomy article 8 solution with SimCorp’s standard solution

Subscription based licensing

ESG Investing

Sales module dependency

ESG Investing

Release 23.10 - ESG

ESG reporting for underlying investments in Private market funds

As a portfolio manager or ESG analyst working in the Asset Manager, you can already interact with ESG analytics and ESG results of individual companies in your private market funds. This is enabled by the look-through, drill down, and filtering capabilities of the Asset Manager.

Similar capabilities have now been added in the reporting and data distribution flow. In the Middle Office Calculation Manager, you can now apply filtering and look-through of private market funds in combination with other asset classes. This completes the cycle in the operational value chain and delivers a fully cross-asset IBOR / EBOR / ABOR architecture. It gives you ESG results at the most granular level, delivered into your data warehouse for further distribution in dashboards and/or reports.

Benefits

• Monitor ESG contributions of underlying investments in your private market funds
• Build comprehensive views on ESG topics across liquid and illiquid investment types

Subscription based licensing

ESG Investing

Sales module dependency

ESG Investing

 

 

 

Release 23.07

Nuclear and gas in EU taxonomy 

The European Commission agreed on an update to the EU Taxonomy with respect to classifications of nuclear energy and natural gas. This has led to extended disclosure requirements within the product reports, covered by SimCorp’s SFDR solution, as well as extended requirements within corporate reporting, covered by SimCorp’s so-called NFRD-TR solutions. 

Product reporting 

With the enhancements, a range of new KPIs are generated which are needed to generate product reports as specified in Commission Delegated Regulation (EU) 2023/363. As an example, new KPIs are introduced that monitor fraction of taxonomy-aligned investments in nuclear as well as fossil gas, with and without sovereign bonds.

Corporate reporting 

With the enhancements, a significant number of KPIs are generated which are needed as specified in Annex XII of Commission Delegated Regulation (EU) 2022/1214. An example of additional KPIs, are provided in figure below. 

The KPIs extend the packages “NFRD-TR Insurance” and “NFRD-TR Asset Management” that enable insurance and asset managers respectively to report on taxonomy alignment of their financial undertakings. These are required to be included in the annual financial statements covering the financial year 2023. 

Benefits:

• Enable creation of complete set of KPIs needed for compliance with latest EU regulation
• Simplify data import and connectivity by using SimCorp’s standards
• Benefit from SimCorp’s standard EU KPIs developed and updated in collaboration with multiple clients. 

Subscription based licensing

ESG Investing
Sustainable Finance Disclosure Regulation
NFRD-TR Asset Management
NFRD-TR Insurance

Sales module dependency

ESG Investing
SFDR-TR
NFRD-TR Asset Management
NFRD-TR Insurance