dv01 Strengthens Market First ESG Capabilities with Addition of ESG Director Sam Hillier and Release of ESG Performance Report as it Takes On Standardization in Structured Credit
- Former Portfolio Manager and ESG Senior Analyst to serve as dv01's Director of ESG
- Appointment comes as dv01 builds the firm's first-of-its-kind ESG analytics capabilities for structured products
- ESG Impact Intelligence report demonstrates how ESG-related data points can be used to identify alpha-generated opportunities in the agency MBS market
NEW YORK, Nov. 9, 2021 /PRNewswire/ -- dv01, a leading capital markets fintech company driving technological innovation and loan-level transparency in structured finance, today announces that Sam Hillier has joined the company as Director of ESG and will work closely with dv01 Principal of Strategy, Charlie Oshman to drive product development, innovation, and commercialization of dv01's ESG offering. The appointment comes as dv01 develops proprietary technology that integrates ESG data from authoritative sources, such as FEMA, the Federal Housing Finance Agency and the U.S. Department of Treasury, into individual loans. Offering additional transparency at the loan-level, dv01's solution empowers the market to identify ESG-adherence at the loan, security, and portfolio levels, and use this information to mitigate risk and identify securities with outperforming characteristics.
Investors are pouring money into ESG assets, which are estimated to reach $50 trillion by 2025 from $35 trillion last year. Issuance of green, social and sustainability linked bonds doubled in the first half of 2021, with more issuers and securitizations launched, such as GSE green bonds. However, despite this increase in demand for ESG assets the industry does not have a standardized approach, lacking ESG metrics or a sole governing principle for ESG evaluation across structured credit. With continued concerns over greenwashing it is paramount that this be changed.
As the only loan-level ESG data provider for structured products across multiple asset classes, market participants can employ dv01's data to fit their specific reporting priorities and needs. Through its novel ESG offering, dv01 helps issuers identify ESG-friendly loans to bring new ESG deals to market, enables investors to measure ESG compliance of portfolios and improve performance, and allows third-party advisory firms to develop an ESG infrastructure for their clients. Unlocking trustworthy ESG data will act as a catalyst for discussion among key industry stakeholders about a standard approach that cuts through greenwash.
As part of dv01's commitment to transparency, the company will publish ESG market intelligence reports to educate, resolve questions, and provide clarity on the evolution of ESG investing in structured credit. dv01 integrates a large volume of public external datasets and appends data on narrow geographic identifiers to measure local environmental risk and social impact on communities. Using its robust data science effort, volumes of external data, and exclusive loan-level intelligence unavailable anywhere else, dv01 can help stakeholders structure securities and portfolios with an eye on ESG alignment while also generating unique alpha. In its most recent report, dv01 details how investors can use ESG-related variables to generate alpha and spread that currently cannot be realized, even in the largest, most liquid structured credit market in the world - where every basis point is critical to returns. This same analysis is applicable across asset classes and is only available through dv01's ESG offering. The report is now available for download here.
"We are incredibly excited to have Sam join dv01 as Director of ESG. dv01 is committed to providing transparency, data reliability and accountability, and as ESG continues to become a vital component within structured finance, market participants need the right tools to uphold this integrity. In addition to Sam's appointment we are delighted to be able to provide our ESG Impact Intelligence reports that will give investors and issuers much needed insight into this rapidly growing asset class," said Perry Rahbar, Founder and CEO of dv01.
Mr. Hillier spent over 10 years at SEI Investments, where he evaluated and recommended sustainable investing strategies, including thematic investments, ESG integration, and impact investing for institutional, high net worth, and retail investors. He also built out the firm's ESG framework and created a successful ESG strategy, while managing the portfolios for low-turnover investment grade corporate bonds with a focus on Socially Responsible Investing.
"I am thrilled to be joining dv01 at such a crucial time for developing our ESG capabilities. ESG isn't just marketing, it's vital to good fundamental analysis and as such market participants need both the tools and industry-wide standards to maximize performance," said Sam Hillier. He went on to say, "The industry's use of loan-level ESG data is practically non-existent at this point, and I see a great opportunity to educate investors and issuers, increase awareness and ultimately build a more transparent market."
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NOTES TO EDITORS
About dv01
Founded in 2014, dv01 is the leading capital markets fintech company driving technological innovation and loan-level transparency in structured finance. To date, dv01 has provided securitizations reporting and analytics on $4 trillion in notional balance, consisting of 90 million loans and 780 securitizations across consumer unsecured, point of sale, small business, student loans, auto, and both agency and non-agency mortgages. Learn more at dv01.co.
About dv01 ESG Offering
Currently, dv01 has over 40 unique, ESG-related data points that can be appended on a loan-level basis across asset classes, many with significant impact on collateral performance, as discussed above. dv01's ESG metrics include a variety of environmental and social factors that are rooted in market-defined principles, and are aligned with (and derived from) major existing ESG standards. These standards are set forth by the Global Impact Investing Network ("GIIN"), International Capital Markets Association ("ICMA"), Sustainable Accounting Standards Board ("SASB"), and the United Nations. dv01's findings of performance trends are applicable across products. For individual portfolios - both for security and whole loan portfolios, dv01 develops a detailed report, outlining the portfolios composition of ESG-related variables, the portfolio alignment with the industry standard metrics discussed earlier, and highlights the unique attributes with proven performance impact. Learn more at dv01.co/ESG
SOURCE dv01, Inc.
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