Refinitiv and Clarity AI have partnered to provide support for asset managers in meeting their Sustainable Finance Disclosure Regulation (SFDR) reporting requirements.
Refinitiv, which is part of the London Stock Exchange Group (LSEG), compiles financial and ESG data which, when combined with Clarity AI’s modelled and controversies data, can be analysed to provide asset managers with a comprehensive view of their impact on the environment.
Rebeca Minguela, founder and CEO of Clarity AI, said: “LSEG serves thousands of asset managers who will have to report on SFDR, and accuracy will be key – especially in the environment of high regulatory scrutiny surrounding ESG and sustainability.”
The SFDR Reporting Professional features combined capabilities leveraging market-leading data coverage of over 50,000 companies. It is complemented by LSEG’s comprehensive range of reported data on ESG, fundamentals, funds and sovereigns.
SFDR is a key component of the EU’s Sustainable Finance Action Plan, which aims to encourage capital to flow towards companies and activities that support the EU’s environmental and social objectives. It requires financial institutions to disclose the ‘Principal Adverse Impacts’ their investments have on social and environmental issues and also applies to those firms that market sustainable investment products to make additional product-level disclosures.
Data will be accessed via application programming interface and the fully integrated tool will include the ability to aggregate at the portfolio level or to view at the individual security level. There will be a total of over 20 indicators mapped, including 16 mandatory indicators. Additionally, templated PDF reports will be available and can be accessed to ensure ease of reporting to the regulators.
Cornelia Andersson, group leader, sustainable finance and investment at LSEG, said there was the possibility of more collaboration with Clarity AI in future.
“SFDR is placing additional reporting requirements on those marketing sustainable investment products, and many are requiring comprehensive reporting tools to help them comply. Partnering with Clarity AI ensures our clients will have the best possible information and capabilities available to them for SFDR reporting, and we’re already exploring future opportunities for collaboration with Clarity AI.”
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