Clarity AI and LSEG Collaborate to Provide New SFDR Reporting Tool for Investors
Clarity AI, the world's leading tech platform for sustainability, announced that it will work with Refinitiv, a part of the London Stock Exchange Group (LSEG), to create SFDR Reporting Professional.
The SFDR is an important part of the EU's Sustainable Finance Action Plan, which aims to encourage money to flow to businesses and activities that help the EU reach its environmental and social goals. It mandates that financial institutions report the "Principal Adverse Impacts" of their investments on social and environmental issues, and it also applies to those who promote sustainable investment products to provide extra product-level disclosures.
“We are excited to partner with the team at LSEG to bring our market-leading SFDR data coverage and reporting capabilities to an even broader base of clients,” said Rebeca Minguela, Founder and CEO of Clarity AI. “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 market-leading data coverage of more than 50,000 firms will be used to make the most of the SFDR Reporting Professional's combined features. It is supplemented by LSEG's extensive reporting on ESG, fundamentals, funds, and sovereigns.
Data will be available using APIs, and the fully integrated tool will allow you to aggregate at the portfolio level or view at the individual security level. Over 20 indicators will be mapped in total, including 16 mandatory indicators. Also, PDF report templates would be made available so that it would be easy to send reports to regulators.
“SFDR is placing additional reporting requirements on those marketing sustainable investment products and many are requiring comprehensive reporting tools to help them comply. As a provider of some of the most comprehensive sustainability data and indexes available, we are committed to developing leading-edge capabilities working with leading specialist sustainability players,” said Cornelia Andersson, Group Leader, Sustainable Finance and Investment at LSEG. "Partnering with Clarity AI means that our clients will have the best information and tools for SFDR reporting, and we're already looking into other ways to work with Clarity AI in the future."
Source: Clarity AI