Citi has incorporated environmental, social and governance (ESG) scores into its securities services data platform, allowing clients to analyze the sustainability exposure of their holdings at the portfolio and security level.
The bank recently announced a major upgrade to the platform, Citi Velocity Clarity, including enhancements to the universe of available data, bespoke reporting capabilities and API (application programming interface) functionality.
Julie Kerr, APAC head of custody & fund services at Citi, says: “This is an exciting launch. The scale and breadth of services is only expected to increase to meet client demand. As a fund administrator, we have full access to client’s holdings and hence well-positioned to provide them with a platform to meet their reporting needs. Using the ESG solution through Citi Velocity Clarity, clients can not only see the data but can also interactively drill down into specific country or sector exposure. They can download the data for further analysis or feed them into their internal reporting.”
Citi has developed new visualization tools to analyze multiple sustainability measures provided on a daily basis by Arabesque S-Ray, a global data provider that uses an algorithmic methodology to measure ESG performance. Citi has also launched its Citi ESG World Indices, comprised of best-in-class ESG performers from across the global markets, based on Arabesque’s ratings.
The bank plans to work with clients to continue to develop the scope and functionality available through Citi Velocity Clarity, including incorporating additional ESG data from other providers.
Swaminath Nagarajan, APAC head of investment analytics and ESG, Securities Services, at Citi, says: “As new guidelines and taxonomies are issued around the world and new regulations like Modern Slavery Act come into effect, investors need more than the traditional data sets they have today. They need to look deeper into their portfolios and understand exposure to various factors like human rights, labour rights, diversity, emissions, etc. Such information is useful across the front, middle and back office of client organizations as awareness of ESG and climate risk permeates all parts of the investment process. This empowers our clients not only in making investment decisions but also in positive engagement with investee companies.”