The Florida State Board of Administration will use environmental, social, and governance data and analytics tools for its more than 30 funds from BNY Mellon’s Asset Servicing Division. Under the partnership, Florida SBA can monitor and evaluate ESG data from multiple sources in one place. The move is the latest signal of strong cooperation between allocators, asset managers, and the growing number of third-party providers of ESG rankings and other information.
With $245 billion in assets under management, Florida SBA will use the asset servicer’s data tool for a wide range of analysis, from understanding peer practices to customizing portfolios and reporting.
The ESG data analytics service that BNY Mellon provides to Florida SBA will help the latter manage, understand, and compare ESG data of the portfolio companies, according to Frances Barney, head of global risk solutions at BNY Mellon Asset Servicing.
“One of the key challenges and opportunities in the sustainability field is that there’s no single definition [of ESG],” explained Corinne Neale, global head of business applications of BNY Mellon Data & Analytics Solutions. In the case of Florida SBA, which collects its own data, BNY Mellon helps it narrow down the ESG goals it wants to achieve by combining the internal and external data.
“We’re very pleased that the Florida SBA has chosen to adopt our solution, which affirms the increasing market need to navigate a growing pool of sustainability data,” said Charles Teschner, head of data and analytics solutions at BNY Mellon Asset Servicing.
BNY Mellon has been providing Florida SBA with its Global Risk Solutions and Eagle Solutions for more than 15 years. Now, as many industry players call for greater awareness of ESG issues, the bank has expanded its relationship with the allocator in this area, as well.
“As investor appetite for ESG-related investments continues to grow, a lot of questions remain about how to align investments with ESG priorities and performance targets across multiple data and taxonomy sources, how to deliver greater transparency and where to look for guidance,” Teschner said. “We anticipate continued growth in demand for our holistic ESG application to address these questions and to meet regulatory reporting requirements as the space continues to mature.”