Environmental, Social, and Corporate Governance (ESG) principles are dominating the investment mainstream. They are the three key criteria that retail and institutional investors increasingly apply to measure the sustainability and societal impact of an investment in a company or business.
European DataWarehouse’s social mission since its foundation in 2012 has been to increase transparency and restore confidence
in the securitisation market by processing, verifying, and disseminating loan-by-loan information to facilitate the risk assessment of ABS and debt instruments backed by eligible credit claims (DECCs) as collateral used by Eurosystem counterparties in monetary policy operations.
Created in response to the 2008 financial crisis, EDW has contributed to economic growth and social value creation by supporting the development of capital markets and promoting the circulation of safe credit.
Today, EDW strives to also support Europe’s green transition by not only collecting ESG-related data on transactions reported to its platform, but also by working on measures and initiatives to enhance sustainable data enrichment, availability, and comparability across asset classes.
Furthermore, in its role as a market infrastructure and as a registered securitisation repository in both the EU and UK, EDW also regularly contributes to consultations relating to sustainable finance and publishes these via a dedicated webpage.
As such, EDW was recognised for its increased focus on ESG by being named ‘ESG Service Provider of the Year’ by Structured Credit Investor in 2023 at its inaugural ESG Securitisation Awards in London.
ALIGNING OUR VALUES WITH ESG PRINCIPLES
EDW’s values speak to its commitment to advancing initiatives across the ESG landscape.
EDW’s goal is to be carbon-neutral across its entire business by adapting, innovating, and investing to combat climate change through green practices. For example, EDW plants a tree for each ABS transaction that is created on its platform.
EDW endeavours to create an inclusive and diverse work environment and to respect the fundamental human rights of its employees and clients. It was certified as an “Attractive Employer” by Great Place to Work® for a second time in August 2023 via an internationally recognised certification process.
EDW’s corporate governance framework promotes principled actions, informed and effective decision-making and appropriate monitoring of compliance and performance. Its Code of Conduct shapes the company’s operations, reputation, and overall attitude to how it does business and defines the expectations of it has of its employees, consultants, contractors, suppliers, subsidiaries, and affiliates.
Climate change and resource scarcity impact all of us today, and even more importantly, the world we leave to future generations. EDW’s environmental polices reflect the company’s desire and commitment to create a more sustainable economy.
It does so through the company’s internal practices. For example:
Operationally, EDW also collects a wealth of sustainable finance information, including energy performance certificates (EPC) for residential mortgages and auto loans and actively promotes how such datasets can be used for credit risk and correlation analysis to support investment decisions.
EDW is also leading or collaboration on a range of projects that aim to promote sustainable investments and prevent greenwashing:
A company’s social practices reflect how it approaches its relationships with employees, partners, suppliers and the greater community.
EDW fully supports diversity and gender equality. This is reflected by the diversity of the team: 16 nationalities and 17 languages are represented at our international office and the team includes many women in management roles. We are also committed to gender equality in remuneration, which is monitored by our Supervisory Board.
Social policies and healthcare practices at EDW foster a healthy working environment and lifestyle and support families and children. Employees are encouraged to achieve a healthy work-life balance and are provided with measures to promote personal health, for example through subsidised e-bikes. We strive to create a work environment that is psychologically and emotionally healthy.
EDW employees enjoy above-market average rates of pay and a variety of benefits, including 30 days’ paid leave plus public holidays. Our management style is open and participatory, and the company was certified by Great Place to Work® as an ‘Attractive Employer’ for the second time in 2023.
Throughout the COVID-19 pandemic, EDW supported its customers and partners with a series of webinars and virtual workshops and provided advice on data reporting on loans impacted by the coronavirus crisis.
EDW believes that high standards of corporate governance are critical to the achievement of its business objectives and, in turn, the creation and protection of shareholders’ interests, as well as those of its customers, employees and the public, through effective oversight, risk management, and transparency.
Operating as a market infrastructure and designated as a securitisation repository by both the European Securities and Markets Authority (ESMA) and the Financial Conduct Authority (FCA), EDW aims to increase transparency and restore confidence in the ABS market. The company is governed by its 16 shareholders, who are a mix of market participants including large corporations, professional organisations, and banks.
The shareholders appoint a Supervisory Board, consisting of 13 members, responsible for strategy and monitoring EDW’s operations. In addition, EDW has a strict, transparent, and non-discriminatory pricing model set by a Pricing Committee, which consists of eight representatives from the ABS industry.
The Supervisory Board oversees the company’s remuneration and nomination policies, the enforcement of the internal controls system articulated through three lines of defence, and compliance with applicable laws and regulations and adherence to ethical and conduct standards, including sustainability and social responsibility.
EDW shareholders deem this corporate governance system to be the most suitable to combine efficient management with effective controls while enhancing the company’s value.