BNY Mellon has enhanced its securities finance platform to help clients to analyse their agency securities lending programme alongside their sustainability goals.
The announcement comes as stakeholder demands are growing for transparency in connection with ESG commitments.
Delivered through an interactive dashboard, the updated platform allows clients to apply ESG scores based on third-party data across their lendable portfolio and collateral and cash investments. This enables clients to evaluate their level of alignment with their individual ESG goals.
The new dashboard leverages MSCI ESG Research's ESG Ratings, assigning scores to securities across the three distinct pillars of ESG: environmental, social and governance.
The scores are applied to a client's non-cash collateral and cash reinvestment, including both outright purchases and repo collateral.
The resulting output allows clients to quickly and easily analyse how their portfolio, the collateral they receive, and the investments they make, aligns with their environmental, social and governance goals and values.
The new capability represents the first in a series of ESG enhancements BNY Mellon plans to make to its platform.
Ina Budh-Raja, EMEA head of securities finance product and strategy and global head of markets ESG at BNY Mellon, says: "Transparency is critical to the evolution of the ESG investing landscape, as well as the management of ESG risks and regulatory compliance. BNY Mellon is committed to providing clients with next-generation solutions and insights designed to help enable alignment with their ESG goals."
