Minerva Analytics has entered into a collaborative partnership with portfolio management technology provider Ryedale to incorporate environmental, social and governance (ESG) data into the fund management investment process.

The joint work is aimed at asset owners, asset managers and regulators to help them incorporate ESG and sustainability data into their respective processes.

The collaboration comes as research mounts demonstrating that sustainable investment is not only growing but doing so at a rapid pace – requiring investors and policymakers to be on top of related emerging trends.

More and more governments and corporates have committed themselves to transitioning to net-zero greenhouse gas emissions by 2050, in line with the recommendations of the Intergovernmental Panel on Climate Change’s landmark 2018 report.

To hit this target, it is estimated that as much as $93 trillion of investment is needed to enable the transition to a low carbon, climate-resilient economy.

In addition to investor demand, regulators are increasingly requiring allocators and other financial services players to take ESG factors into account within their day-to-day operations.

Risks linked to these investment and regulatory trends will have a significant impact on asset pricing, with the full effects yet to be fully priced in by markets.

Minerva’s powerful objective research and data capabilities – which cover 6,500 companies around the world as well as proprietary ESG benchmarks – will feed into Ryedale’s cloud-based IT platform designed for quantitative and model-based investment strategies.

Ryedale already supplies its ‘software as a service’ to several large institutions as well as growing number of smaller asset managers.

Minerva founder and CEO Sarah Wilson, who has spent more than 20 years in proxy research, said: “Minerva is delighted to be partnering with Ryedale to support investors' sustainable investment ambitions.

“Where stewardship, proxy voting and sustainability were once considered ‘post-trade’ activities, we believe that Ryedale’s innovative approach to holistic portfolio construction is the way forward.”

Jon Rushman, founder and CEO at Ryedale, said: “Global demand for delivering differentiated ESG data, analytics and tools is growing and driven by the regulations and investor acceptance of the significance and materiality of sustainability factors.

“Having the ability to drill down into the portfolio and better understand ESG profiles, thereby identifying companies that are better positioned for future challenges, is increasingly seen as a necessary aspect of a portfolio management system, in order for investors to be able to manage and monitor the risk and opportunities associated with these megatrends.”

Minerva already partners with a number of other companies in the corporate governance, data provision and software sectors, including Solactive, Engagement International, Pensions for Purpose, and the Task Force for Climate-related Financial Diclosures.

To find out how Minerva can help you make the most of ESG metrics and data support decision-making call us on +44 (0)1376 503500 or email us at hello@minerva.info