Integrating Alygne’s alternative data into Fusion Invest by Finastra allows users to ensure their investment portfolios reflect their ESG values

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Global fintech provider Finastra has collaborated with a sustainability technology platform Alygne to help asset managers make better-informed ESG investments.

Finastra’s Fusion Invest is an investment management platform for asset managers, insurance companies, pension funds, hedge funds and sovereign wealth funds. The platform, which can be deployed both on cloud and premise, covers the entire investment value chain, delivering portfolio insight and automated processes with a collaborative real-time Investment Book of Records.

The enhanced solution will allow financial institutions to additionally utilize ESG alternative data on private and public companies. Therefore, they will be able to?check the environmental impact of trade simulations along with using traditional financial metrics while monitoring their portfolios.

The lack of appropriate data and metrics often prevents asset managers from estimating their investment portfolios with ESG objectives in mind. However, Alygne’s sustainability technology platform makes ESG-related alternative data accessible and transparent for both private and public companies.

The platform quantifies ESG scores based on data from multiple sources. For once, it uses natural language processing and machine learning (ML) to read and analyze global news, social posts, and corporate announcements, illustrating ESG goals and milestones. Besides, Alygn uses metrics common for global reporting frameworks, such as Sustainable Finance Disclosure Regulation (SFDR) and Sustainability Accounting Standards Board (SASB) standards.

When that capability is added to Fusion Invest’s state-of-the-art?features such as advanced analytics, comprehensive asset class coverage, digital dashboarding and open APIs, financial institutions can easily deliver higher returns with minimal operational risks while pursuing their ESG agenda and supporting sustainable businesses.

As we have previously reported, Mastercard is accelerating its ESG efforts, pledging to ditch all first-use PVC plastic cards by 2028.