On one end, Sharpfin serves Wealth Managers with a cloud-based administration platform. On the other end, the climate fintech Datia focuses on gathering and calculating sustainability indicators that can drive more sustainable investment decisions.

Thanks to the partnership, Wealth Advisors using Sharpfin’s platform will gain access to Datia’s sustainability indicators calculated for each portfolio and a complete and modern sustainability reporting that can be presented to end clients, driving engagement and positive change.

Moving forward, Wealth Advisors using Sharpfin will be able to:

• See, in their Sharpfin dashboard, a sustainability analysis of each client’s portfolio
• Download a comprehensive and tailored sustainability report to be shared with end clients

Wealth Advisors using both Datia and Sharpfin will have the same benefits as listed above, and also:

• Set up, at Datia, their own methodologies for assessing sustainable investments, choosing their set of KPIs and thresholds
• Use their own methodology to back the sustainability analysis of each client’s portfolio

How it works in practice:

Sharpfin’s software connects, through an API call, with Datia’s software. The API call matches the ISIN codes of the instruments in a portfolio in order to map the sustainability data of the underlying assets. Datia’s software then calculates the weighted sustainability metrics of one specific portfolio. The calculated metrics are sent back to Sharpfin’s software which then displays the indicators in the Wealth Managers’ dashboards.

A more complete set of metrics is also inserted into Datia’s proprietary End Client Sustainability Report, which includes insights such as:

• A breakdown of the financial products according to their sustainability profile
• A list of leaders and laggards companies when it comes to ESG topics (Environmental, Social, and Governance)
• A comparison of the ESG performance and sustainability KPIs of the end client portfolio with different indexes and funds

This entire process is possible thanks to Datia’s newly launched public API which aims to improve the flow of sustainability information into the diverse tech stack already existing in the financial market.

Why does an End Client Sustainability Report matter to Wealth Advisors?

The European regulation called MiFID II (short for “Markets in Financial Instruments Directive”) defines many obligations for the relationship between Wealth Advisors and their clients. One of them is that starting August 2022, Wealth Advisors need to take into consideration the sustainability preferences of their clients in order to create an investment plan, alongside many other factors such as risk tolerance.

After understanding and applying sustainability preferences in the investment process, Wealth Advisors are expected to report the sustainability profile of the portfolios and, together with the customer, continuously work towards sustainability goals. Datia’s End Client Sustainability Report solves exactly this challenge.

About Datia

Datia is a climate fintech company on a mission to empower investors' transition to sustainable finance, serving asset managers, asset owners, management companies, wealth advisors, and tech platforms. Datia enables investors to stay focused on their investment strategy while optimizing their sustainable finance process with traceable data, smart insights, and ready-to-share reports. Founded in 2019 and headquartered in Stockholm, Sweden, Datia has a customer network with over $200B in assets under management (AUM).

Learn more about Datia’s proprietary End Client Sustainability Report

About Sharpfin

Sharpfin is a Wealth Management System that rides the waves of change for sharper investments. More than 15 organizations and over 4,000 users in Scandinavia rely on Sharpfin to reshape the way financial services are delivered. With a strong track record of empowering financial institutions, Sharpfin continues to succeed in delivering increased customer satisfaction, simplified regulatory compliance, and granting more time for quality management and customer advisory.

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