- The new tool helps fund managers market products that align with naming rules, labels and standards across Europe
London, February 5, 2025 – Clarity AI, the leading global sustainability tech company, today announced the launch of a solution designed for fund managers, portfolio managers, and ESG analysts to easily navigate the growing complexity of regulatory and labelling requirements for sustainable investment funds in Europe.
With increasing regulatory demands and greenwashing scrutiny, new sustainability labels are emerging. Some of these requirements, like the UK FCA’s Sustainability Disclosure Requirements (SDR), are driven by regulators, while others, such as France’s SRI label and Germany’s FNG, are government or industry-led.
Clarity AI’s solution addresses the challenges of monitoring funds across complex metrics and frameworks -unique to each market- by providing a user-friendly platform that brings all the information into one single screen. “The goal is to reduce the amount of time fund managers spend on identifying potential investments that fall short of the standards, and understanding the cause for non-compliance, in order to decide on the best course of action,” said Henry Waind, Product Lead at Clarity AI.
Adaptive technology to keep up with market changes
Recent guidelines from the European Securities and Markets Authority (ESMA) underscore the importance of maintaining high standards for funds using ESG-related terms in their names, including an 80% minimum investment in sustainable assets. These developments highlight the critical need for tools that can quickly adapt to regulatory changes.
“Sustainability regulations and labels are proliferating, making it increasingly challenging for fund managers to keep up”, said Tom Willman, Regulatory Lead at Clarity AI. “A significant amount of resources is tied up in regulatory obligations. These could be better used to develop sustainable solutions that support end-investors’ sustainability goals, and technology is key to making this process more efficient.”
Clarity AI supports fund managers with the German FNG, UK SDR Labels, and will soon introduce additional labels, such as the French SRI label and the Belgian Towards Sustainability label. The solution also helps screen for the Paris-Aligned Benchmark (PAB) and Climate Transition Benchmark (CTB) exclusions for ESMA Naming Rules.
About Clarity AI
Clarity AI is the leading sustainability tech company, leveraging advanced technology and AI to provide data-driven environmental and social insights to investors, corporates, governments, and consumers. AI has been at the core of Clarity AI’s offering from the start, supporting a fully flexible set of data solutions, insights, analytics capabilities, and tools used for portfolio management, corporate research and engagement, benchmarking, regulatory reporting, online banking, and e-commerce. Clarity AI was named a leader by independent research in The Forrester Wave: ESG Data & Analytics, Q3 2024.
Within the investment sector, Clarity AI serves a direct network of clients managing over $60 trillion in assets and includes firms like Invesco, Nordea, Lazard Asset Management, and Santander. Our strategic partnerships with financial institutions such as BlackRock, the London Stock Exchange Group (LSEG), BNP Paribas, Caceis, or SimCorp, allow thousands of users to access Clarity AI advanced data analytics capabilities through their usual investment platforms, ensuring a seamless workflow experience. Clarity AI has offices in North America, Europe, and the Middle East. For more information www.clarity.ai
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