FINBOURNE Collaborates With Denominator to Empower Buy Side With DEI Data

Published on: 24 August 2022
by KnowESG
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FINBOURNE Technology announced a new partnership with Denominator, a global provider of diversity, equity, and inclusion (DEI) data and scoring.

The collaboration seeks to provide close support to the global Buy Side as it responds to growing demands for DEI transparency among a new generation of value-based investors.

Following an announcement by the Principles for Responsible Investment (PRI) earlier this year, the integration of Denominator's distinctive data collection is a timely addition to FINBOURNE's flagship investment management platform, LUSID. 

The UN-backed network of institutional investors has called on members to compel DEI reporting across investment holdings and the supply chain. With a combined AuM of $130 trillion, this network is expected to draw more attention from regulatory agencies throughout the world.

The combination of increased investor and regulatory expectations, particularly the UK Financial Conduct Authority's (FCA) recent DEI policy consultation, is increasing the Buy Side's need for holistic and granular information on portfolio businesses' DEI performance.

Given the market's availability of aggregated ESG ratings and methodology, rigorous analysis and interpretation of DEI data have become a complex and time-consuming task for many asset managers, sometimes leading to a limited focus on gender at the board level.

FINBOURNE and Denominator are trying to transform this obstacle into an investment opportunity by promoting fact-based decision-making, increasing transparency and responsibility for end investors, and ultimately closing the worldwide DEI gap through positive engagement.

Through the integration, FINBOURNE's clients will have access to Denominator's data set, which includes DEI data and scores for over 15,000 public businesses and over 1.5 million private companies. 

Denominator provides the most comprehensive data set of its kind, based on internationally recognised frameworks such as the UN Global Compact's Sustainable Development Goals and the World Economic Forum's Gender Parity.

Asset managers may develop and manage an informed investable universe with 250+ unique DEI variables over 15+ dimensions (gender, race, age, nationality, education, sexuality, disability, health...), with the added ability to score and forecast portfolios. 

This includes not only popular factors like the percentage of women and ethnic minority board members and executive-level staff but also more unusual indicators like cognitive diversity, such as the diversity of education among board members and senior management.

Anders Rodenberg, CEO of Denominator, commented: 

“We are truly excited about this partnership with FINBOURNE Technology. The integration of our exhaustive diversity, equity, and inclusion data will enable the global Buy Side to harness new and customised investment strategies that will appeal to investors and deliver a competitive edge. As with the E in ESG, we aim to move the dial for this critical social element of ESG from negative screening and best- endeavour reporting, to driving positive engagement with global companies and making DEI an active priority for global business and society”.

Matthew Luff, Head of Partnerships at FINBOURNE Technology, said: 

“Partnering with Denominator empowers our clients with quality data to create and manage an exciting new range of portfolios, catering to previously underserved sections of the population. Unlike measures such as emissions which are harder to conceptualise, we are all able to look around our workplaces and see diversity, or a lack of it. Our close partnership with Denominator delivers our clients actionable data and insights, to invest in those companies that are making strong returns, alongside a real commitment to DEI values.”


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