Proof Announces SFDR Compliance Solution to Private Market Investors
The SFDR (Sustainable Finance Disclosure Regulation) is a new European regulatory requirement that requires investors to disclose information about the sustainability risks and characteristics of their investments. Proof, a company that provides impact intelligence solutions, has launched an end-to-end module to help investors comply with these regulations.
Using a hybrid approach of automated digital tools with expert advisory & consulting services, Proof’s SFDR offering includes:
1. Guided SFDR Checklist and Knowledge hub to avoid missing critical steps and compliance requirements
2. Ongoing PAI Monitoring of your portfolio's progress towards PAI data collection
3. Real-time, sharable reports, including automatically generated EETs, detailed audit log, and snapshot of overall required SFDR disclosures
4. Automated gap analysis, proxy planning advisory and integration of proxy data
5. In-app messaging & support from SFDR experts and advisory partners
Proof's SFDR solutions help reduce risk across funds and portfolios by giving a single view of key ESG data, supporting documentation, and compliance.
The regulations apply to a wide range of financial market participants, including private market investors. Beginning in June 2023, these investors will be required to publicly disclose information about the environmental, social, and governance (ESG) performance of their investments. It will foster market transparency and the flow of capital toward more sustainable businesses.
Kevin Pettit, Co-founder & Chief Product Officer at Proof, said: "The broader opportunity for investors is to showcase how to extend beyond SFDR compliance and into performance. Proof helps clients put SFDR reporting on autopilot so they can focus on measuring the metrics that matter.”
As a platform for impact intelligence, Proof gives investors a variety of tools and services to help them follow the rules of the SFDR. These may include:
Simplified, tech-enabled guidance: The platform may use advanced technology to guide investors through the compliance process, making it easier to understand and follow the regulations.
Market-leading experts: Proof can connect you with a team of experts who know a lot about SFDR regulations and sustainable finance and can give you more help and guidance.
Continuous oversight of compliance: The platform may offer ongoing monitoring and reporting to ensure that investors comply with the rules.
Real-time access to data: The platform could give investors access to real-time data on how their investments are doing in terms of sustainability. This would help them make better decisions and report on their ESG performance.
Proof aims to lower compliance risk, reduce manual inefficiencies, and enable fund managers to grow their sustainable holdings by providing these services, competing with other tools in the marketplace, such as Clarity AI and LSEG's collaboration.
To learn more about Proof SFDR compliance services and to join the SFDR readiness programme, click here.