Solving the EU Sustainable Finance Disclosure Regulation (SFDR)
Tech-based reporting tools to ensure compliance with SFDR, allowing investors to leverage multiple data sources and proprietary analysis: Leverage Clarity AI’s cloud-based, customizable ESG Risk, Sustainability & Impact reporting tool to comply with SFDR requirements
Access the broadest coverage across 16 mandatory and 29 optional Principal Adverse Impact indicators for more than 50,000 companies (2-3x more alternatives)
Leverage portfolio aggregation for multi-asset and look through capabilities with market-leading coverage of more than 220,000 funds
Simplify reporting by generating and accessing a compliance-ready report in one click
What is SFDR?
European regulatory authorities are leading the global transition to a more sustainable economy through multiple regulatory initiatives, one of them being the Sustainable Finance Disclosure Regulation, or SFDR. Its main goal is to harmonize disclosures on the integration of sustainability risks and the promotion of sustainable investments in the EU. SFDR could revolutionize sustainability reporting – and, in turn, rescope the data that companies track to measure their ESG performance.
Report accurately with the broadest, most reliable data coverage available for SFDR PAIs
Regulators expect a “best efforts” approach to source SFDR data. Clarity AI cleans conflicting data in the market and uses machine learning to increase coverage
160% that of any other player in the market
Data Coverage:
More than 50,000 companies
>98% of the ACWI
2-13x that of other providers, including all legacy brands
Data Accuracy:
Processing more than 1M data points each week via machine learning algorithms to contrast overlapping reported data to select the best option and to estimate missing data in a best effort to increase quality coverage
Leveraging Natural Language Processing to assess more than 100,000 articles from 33,000 trusted news sources every day to ensure company controversies are up to date and included in an unbiased way
SFDR data providers have limited and incorrect data coverage, which will lead to incomplete & inaccurate reporting
CASE STUDY
BlackRock Enterprise-level SFDR Reporting
230+ Institutional Investors | Represent 36 Countries Globally
The Landscape
BlackRock was looking for a reporting partner with market-leading data coverage and full-workflow integration, to enhance its enterprise reporting capabilities for the SFDR framework. Specifically, BlackRock wanted to integrate data addressing the PAI indicators, and the relevant ESG metrics mandated as part of SFDR.
“Deepening our partnership with Clarity AI is an exciting step forward for BlackRock and will provide us the ability to offer Aladdin users enterprise level reporting for SFDR.”
Clarity AI Integrates with the following Platforms for SFDR Reporting:
Clarity AI Regulatory Insights
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November 3, 2022 · 2 min readRegulatory ComplianceSFDR: Just How Sustainable Are Article 9 Funds?
Analysis shows that some of the Article 9 funds currently in the market might be falling short of complying with the sustainability-related criteria
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October 20, 2022 · 2 min readRegulatory Compliance
SFDR Reporting: What Article 2 (17) is and Why You Should Care About it
From 2023, financial institutions need to report on sustainability under SFDR while confusion around key concepts remains As we enter the final stretch of 2022, financial market participants are getting ready for their S...
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September 7, 2022 · 3 min readRegulatory Compliance
Ensure you are using accurate data for SFDR reporting
Financial Market Participants should have started collecting data for SFDR earlier this year as the deadline for reporting has already been delayed once and will most likely not be delayed again. As a reminder, the Regul...
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Webinars
SFDR: Quant and AI-based Solutions
EU Sustainable Finance
Clarity AI In the News
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November 3, 2022 · 1 min readMedia & Press
Study Raises Doubts Around Sustainability of EU’s Top ESG Funds
Europe’s greenest fund category may not be as sustainable as its classification suggests, according to a report published on Thursday by Clarity AI, a sustainability technology platform.
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November 3, 2022 · 1 min readMedia & Press
Article 9 funds might be noncompliant with ‘do no significant harm’ criteria
According to a recent assessment of 15,000 funds and their Sustainable Finance Disclosure Regulation (SFDR) classifications, research showed that many Article 9 funds might be noncompliant with the regulation’s ‘do n...
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November 3, 2022 · 1 min readMedia & Press
20% of sustainable funds 'fall short' of SFDR standards
This means they have more than 10% of their investments in companies that have violations of the UN Global Compact principles or the OECD Guidelines for multinational enterprises.
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