Reflection Analytics Launches Digital Platform for Comprehensive ESG Audit and Analysis Reflect is the only “Names Rule”-compliant tool allowing asset managers to begin reporting on their alignment following SEC’s expansion of 35d-1 to include ESG terms.
MOUNT PLEASANT, SC
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December 14, 2023 10:05 AM Eastern Standard Time
Reflection Analytics, a technology company delivering ESG investment evaluation, reporting and advisory services, announced today that it has launched Reflect—the first and only platform for investor-focused ESG analysis, serving asset managers, financial advisors, and investors/institutions across six key areas: advisory, due diligence, compliance, portfolio management, auditing and reporting.
Launched just two months after the SEC expanded Rule 35d-1, the “Names Rule,” to include ESG terms, Reflect is the market’s only “Names Rule"-compliant software, providing an investor-focused rating that scores companies across 250 data points in 18 ESG sub-themes while also offering asset managers a portfolio management tool to ensure continuous compliance.
Under the SEC’s expanded rule, asset managers have 24 months to begin reporting on their alignment, demonstrating that 80% of their investments are in securities that reflect the terms in their name, or risk regulatory fines and fees. Unlike other ESG rating companies, which focus on only financial materiality and from the corporation’s management perspective, Reflect assesses companies from the perspective of an investor’s understanding and reasonable expectations.
“The big ESG ratings agencies aren’t evaluating companies from the investor’s perspective—which the expanded SEC ‘Names Rule' requires—but rather are looking at them from a corporate management perspective, which is a real problem,” said Jason Britton, Founder and Chief Executive Officer of Reflection Analytics. “With existing rating methodologies, a company like McDonald’s could have a higher ESG rating than a business focused on reducing greenhouse gases and cleaning up waste. With Reflect, asset managers have, for the first time, the ability to assess investments from the investor’s perspective and at a more granular level.”
The SaaS tool assesses companies by benchmarking them against their sector peer group and ranking them by quartile performance.
Beyond its use as a compliance tool, Reflect is designed to support values-based investing. The Reflect platform allows advisors, investors and institutions to review portfolios based on ESG components that are most important to them while also identifying types of companies to avoid, such as those associated with weapons or alcohol.
After analyzing an investment portfolio, Reflect provides a real-time, percentage-match score, rating investments across 18 sub-themes ranging from “not aligned” to “strongly aligned.” Reflect can also weigh an existing portfolio against a curated list of investments, allowing individuals and institutions to compare assets via a side-by-side analysis.
With comprehensive data on 6,500 companies—or 98% of the global market capitalization—the patent-pending software can analyze virtually every asset type, including individual equities, bonds and investments in various structures, including ETFs, mutual funds and SMAs.
Like a credit-rating score, Reflect provides investors, advisors and asset managers with the most comprehensive, up-to-date ESG information and the assurance it brings.
About Reflection Analytics
Reflection Analytics’ patent-pending software—Reflect—is the only ESG ratings tool designed to serve asset managers, financial advisors and investors/institutions across six key areas: advisory, due diligence, compliance, portfolio management, auditing and reporting. Unlike other ESG software, which are reliant on rating methodologies rooted in the corporate perspective, Reflect analyzes 250 data points from an investor-focused viewpoint. As the industry’s only “Names Rule-compliant tool,” Reflect helps portfolio managers meet new compliance standards, with the SEC’s expansion of the “Names Rule” to include ESG funds taking effect in less than two years. Reflect maintains comprehensive self-reported and third-party data on 6,500 companies, or 98% of the global market cap. For more information, visit: www.reflectvalues.com.
Contact Details
For Reflection Analytics
Peter Page
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