Driving ESG Excellence at SIX: Data & Partnerships

In the ever-evolving world of finance, Environmental, Social, and Governance (ESG) considerations have become pivotal for institutions striving to meet regulatory standards and achieve long-term sustainability goals. To better understand the company’s ESG journey, we sat down with Martina Macpherson, Head of ESG Product Strategy & Management at SIX, to discuss how the company’s strategy has evolved, what strategic decisions have shaped its future, and the key trends in ESG tech.

How did SIX’s ESG Strategy Evolve?

SIX’s journey into ESG began in 2021, recognizing the growing importance of ESG factors in financial decision-making and compliance. We started with data distribution and aggregation, building a strong foundation to support broader ESG services. As client demands and market dynamics evolved, we have seen the need to transition from simple data aggregation to providing proprietary data, content, analytics, and solutions.

This shift is driven by the increasing complexity of ESG regulations, especially in Europe and the Asia-Pacific (APAC) region. Our "one-stop-shop" approach now aims to simplify compliance and decision-making for our clients. By offering a comprehensive suite of ESG data, regulatory content, and solutions, we address the complex challenges faced by large financial institutions, including asset owners, asset managers, banks, and potentially insurance companies.

What strategic decisions has driven SIX’s ESG future?

To effectively navigate the ESG landscape, we’ve made several strategic decisions. We’ve chosen to focus our efforts on two core areas: data, including regulatory data and content, and solutions. This focus allows us to provide the most value to our clients and the market.

We are also increasing our emphasis on proprietary data sourcing to develop more tailored solutions. By increasingly focusing our efforts on proprietary regulatory ESG data, we can offer unique insights that give our clients a competitive edge.

While our primary focus is on large financial institutions, we are exploring opportunities to expand our reach to other segments, such as small and medium-sized enterprises (SMEs) and insurance companies. This exploration reflects our commitment to adapting to changing market needs and identifying new growth opportunities.

What are the key trends you see in the ESG tech space?

The ESG tech solutions market is experiencing significant changes, driven by the increasing complexity of ESG requirements and a growing demand for integrated, end-to-end data software-as-a-service (SaaS) solutions. Our approach is both strategic and proactive, ensuring that our offerings remain relevant and valuable to our clients.

One of the most prominent trends is the demand for integrated solutions that combine ESG data, analytics, regulatory reporting, and potentially other functionalities like risk and portfolio management. Clients are increasingly seeking seamless solutions that allow efficient management of their ESG responsibilities.

Adaptability and scalability are also critical. As data volumes grow and regulations become more stringent, solutions must be able to scale and adapt to different client segments. We also see a trend toward consolidation and content, co-creation, and distribution partnerships within the ESG tech space. Larger players are acquiring startups and forming strategic alliances to expand their offerings and capabilities. Our partnership with Greenomy is a prime example of how collaboration can lead to more robust solutions.

There is also significant potential for marketplaces that curate and connect ESG tech solutions from various providers, offering a single access point for clients. These platforms could play a crucial role in the future of ESG tech, enabling clients to access a wide range of solutions efficiently.

What Role Did the Partnership with Greenomy Play?

The partnership with Greenomy was a significant milestone in our ESG strategy, enabling us to quickly offer market-ready ESG solutions. Greenomy, a startup specializing in ESG corporate disclosure and reporting and green lending eligibility assessments, was chosen for its regulatory expertise and alignment with our diverse client needs. This collaboration allowed us to launch the SIX Sustainability Assessment Solution, a white-labeled version of Greenomy’s technology, to help companies align theirESG disclosures with regulatory frameworks.

This collaboration was about aligning our goals and leveraging expertise to meet the needs of our clients. We selected Greenomy after a thorough evaluation, considering factors like client use case alignment, ecosystem fit within SIX, the strength of the Greenomy team when it comes to integrated tech/ESG expertise, positive client feedback, and significant growth potential.

Beyond technology, this partnership is about co-creating solutions tailored to different markets and evolving regulations. While Greenomy initially focused on Europe, we are now in discussion to adapt the solution for other markets, addressing the unique and ever-evolving regulatory requirements. This adaptability and framework operability provided by Greenomy’s SaaS ensures that our offering remain relevant and robust as the ESG landscape changes.

Why Did SIX Choose to Partner with Greenomy Instead of Building Its Own Solution?

Building a comprehensive ESG reporting solution from scratch would have been resource-intensive and time-consuming. Instead, we opted for a “multi-vendor, single-access-point” approach, which aligns with our core strengths as a data and regulatory content services provider. Greenomy was an ideal partner due to their expertise in ESG reporting and regulatory compliance, allowing us to leverage their capabilities while focusing on our core strengths.

This ongoing collaboration shows how strategic partnerships can drive innovation and respond effectively to complex market needs. As regulations evolve and new markets emerge, our collaboration ensures that we can adapt and expand our offerings, providing dynamic and scalable solutions to meet our clients' needs – today and tomorrow.

As ESG becomes increasingly essential to financial decision-making, SIX Financial Information continues to lead the charge by offering innovative, scalable, and integrated solutions tailored to the complex regulatory landscape. The partnership with Greenomy exemplifies how strategic alliances can accelerate product development and meet diverse client needs across different markets. With a clear focus on adaptability and sustainability, SIX is well-positioned to remain a key player in the evolving ESG ecosystem, supporting financial institutions in their mission to align with global sustainability goals.

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Download the Tenity Climate Fintech Report 2024 here.