Matter enters partnership with SimCorp to provide investors with sustainability insights

Danish sustainable investment insights provider, Matter, has entered a partnership with SimCorp, one of the leading global investment and portfolio management software providers, following a dialogue which began during Copenhagen Fintech’s Partnership Fast Track Program during Spring 2020.

The partnership aims to provide institutional investors a granular, transparent view of the extent to which their portfolios are aligned – or misaligned – with the United Nations Sustainable Development Goals (SDGs).

Matter was founded in 2017 by?Niels Fib?k-Jensen?and?Emil Stigsgaard Fuglsang, to address the demand for more transparent and intuitive?sustainability analysis and reporting. With the use of technologies such as AI and machine learning, Matter enables all kinds of asset managers and investors to analyse the real impact of their investments and make more?informed decisions regarding the sustainability spectra, whether societal, economical, or environmental.?

Meanwhile, since 1971, Copenhagen-based SimCorp has worked closely with investment and asset managers to become the world’s leading provider of integrated investment management solutions – with 25+ offices around the world, 2300+ employees and 300+ clients.

The partnership will?enable common SimCorp and Matter clients to improve impact monitoring and reporting, as well as identify new investment opportunities, through Matter’s sustainability insights related to the UN SDG’s, and over time also EU SFDR and EU Taxonomy. This portfolio alignment analysis is based on Matter’s SDG Fundamentals framework, which according to the press release, aims to assist investors in enriching their approach to sustainability analysis in four ways:??

• Integration: helping investors identify sustainable thematic head- and tail-winds to inform their investment decision-making;
• Regulatory compliance under SFDR and MiFID II to inform ‘sustainable investment’ determination;
• Stewardship and exclusion purposes: helping investors to identify revenues misaligned to sustainable themes; and
• Portfolio construction and reporting for thematic and impact funds.?

- Our clients acknowledge that optimising for sustainability is a wicked problem, requiring transparent and granular data integrated into the portfolio and investment management platforms where they are making their everyday investment decisions. We are delighted to work with a market leader like SimCorp to deliver more deeply integrated and efficient tools to clients, says Niels Fib?k-Jensen, CEO and co-founder of Matter.*

The new workflow also supports the SimCorp Integration Model (SIM), which will allow common clients to make better informed investment decisions using a clearer picture of their capital allocations from a sustainability point-of-view.

- Institutional investors are increasingly focused on the ability to quantify and monitor the societal impact of their investments in real-time, with SDG alignment becoming an industry standard, says Carl Balslev Clausen, Director and Head of ESG Product Management at SimCorp, and continues, Matter’s SDG alignment framework is very comprehensive, and we are delighted to incorporate Matter's dataset into our ESG and sustainable investment solutions.*

*Quotes extracted from press release of the news