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.”

Stéphane Lapiquonne, Managing Director, BlackRock
and Head of Sustainability for EMEA

Clarity AI Integrates with the following Platforms for SFDR Reporting:

Webinars

SFDR: Quant and AI-based Solutions

EU Sustainable Finance