A Case Study of Clarity AI and GIST Impact
The following case study displays how Clarity AI tools can be used by a hypothetical asset manager, Biome AM, that wants to assess nature-related opportunities, risks, impacts, and dependencies of its portfolio and report following the LEAP-FI framework (“Locate, Evaluate, Assess, and Prepare” framework for Financial Institutions). The case study builds on TNFD’s v0.4 beta materials.
Introduction
Clarity AI’s TNFD solution, developed in partnership with GIST Impact, integrates multiple frameworks and data sources providing comprehensive support to financial institutions throughout the stages of the LEAP-FI process. The tool combines self-reported data from companies, AI-based estimations on environmental pressures (e.g., Nitrogen Oxides emissions -NOx-), observational data at the asset level (e.g., satellite images), and models that quantify impacts on nature (e.g., Potentially Disappeared Fraction).
The portfolio level aggregation allows investors to get an overview of their performance and facilitates reporting, while the ability to drill down at the asset level provides actionable insights and transparency.