Clarity AI, a global sustainability tech platform, announced a collaboration with Refinitiv, a London Stock Exchange Group (LSEG) business, to develop the Sustainable Finance Disclosure Regulation (SFDR) Reporting tool.
The Sustainable Finance Disclosure Regulation (SFDR) is a European regulation that was implemented to improve transparency in the market for sustainable investment products, prevent greenwashing, and increase transparency around sustainability claims made by financial market participants.
The SFDR is a critical pillar of the EU Sustainable Finance agenda, having been introduced as a key component of the European Commission’s 2018 Sustainable Finance Action Plan.
The combined capabilities of the SFDR Reporting Professional will leverage the market-leading data coverage of over 50,000 companies. In addition, LSEG’s extensive reporting supplements it on ESG, fundamentals, funds, and sovereigns.
Data will be accessed through APIs, and the fully integrated tool will allow readers 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. Furthermore, templated PDF reports will be available and accessible to ensure ease of reporting to regulators.
“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. 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.”
Rebeca Minguela, Founder and CEO of Clarity AI.
“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. 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”.
Cornelia Andersson, Group Leader, Sustainable Finance and Investment at LSEG.