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Global Fund Services leverages Sustainalytics to offer independent ESG analytic and reporting services. 

Companies are increasingly being held to new and higher standards beyond just their stock price. Investors are interested in investing in companies that are socially responsible, while having a strong governance model in place. With this new focus, companies navigate a fine line between cost-cutting and investment, along with an increased focus on issues involving environmental, social and governance (ESG).

Breda Sullivan, head of U.S. Bank Depositary Services, Europe, says, “As sustainable investing gains traction, and regulatory requirements for using the ESG label continue to be developed, companies who use the ESG label are required to disclose their progress in this space. With such a diverse universe of ESG criteria, it can be challenging for companies to know how to track and report their efforts in a way that satisfies regulatory requirements. U.S. Bank just made this a bit easier for them.”

U.S. Bank announced today that it will leverage Sustainalytics, a Morningstar Company and a leading global provider of ESG research and ratings, to offer environmental, social and governance (ESG) data solutions to U.S. Bank Global Fund Services (GFS) clients where independent ESG analytics and reporting services are required.

With this relationship, clients will have access to a wide range of market standard-based sustainable investment datapoints applicable to their portfolio. U.S. Bank has integrated Sustainalytics’ research and ratings to support portfolio analysis which enables regulatory compliance solutions and investor and financial reporting capabilities to address emerging regulatory and investor reporting demands. The sustainable investment data integration will also include a depositary oversight solution: U.S. Bank will use Sustainalytics’ ESG research and ratings to ensure qualifying EU depositary clients are compliant with Sustainable Finance Disclosure Regulation (SFDR) requirements.

“New regulatory requirements often introduce a level of uncertainty on how to address the requirements,” Sullivan said. “U.S. Bank brings a wealth of resources and industry expertise that not every fund service provider can claim. We’re excited to work with Sustainalytics to offer this new level of customized oversight to clients with sustainable investment strategies.”

Sustainalytics has a team of more than 500 in-house research analysts dedicated to producing its ESG research and ratings. In addition, the company relies on public disclosures and artificial intelligence to mine and report on meta-datasets. The resulting data library – accessible to U.S. Bank clients – provides coverage on approximately 15,000 companies and is structured in a manner that allows GFS to extend this data to bonds and derivatives issued by the companies in scope.

Global Fund Services joins U.S. Bancorp Asset Management, which already utilizes Sustainalytics to integrate ESG investing strategies for clients.

U.S. Bank Global Fund Services is part of U.S. Bank’s Wealth Management and Investment Services division, which has $9.5 trillion in assets under custody and administration and $428 billion in assets under management, globally, as of December 31, 2021. In addition to offering fund services and alternative investments, it also offers global corporate trust and custody services, fund custody and administration services, depositary services and asset management products and services.