Articles

Articles November 18, 2024 • Infront, Clarity AI

Navigating ESMA’s ESG Scrutiny: A Practical Guide for MiFID II

Due to amendments to the MiFID II regulation effective since August 2022, distributors of financial instruments in the EU have been required to collect clients’ sustainability preferences to ensure any financial products sold to them are suitable. ...

Articles November 16, 2024 • Lorenzo Saa

COP16 Review: Progress, Challenges, and the Role of Investors in Nature Conservation

Key Insights High-level outcomes of the conference were mixed. There was some encouraging progress, for example, the creation of a new body to embed Indigenous Peoples in future biodiversity decisions. However, only 44 of 196 countries submitted upda...

Articles November 13, 2024 • Lorenzo Saa

The Essentials of AI and ESG: Opportunities, Risks, and Governance Insights for Institutional Investors

Discover how AI and ESG intersect, empowering investors to drive sustainable progress while managing environmental, social, and governance risks responsibly.

Articles October 31, 2024 • Tom Willman

State of ESG Regulations in 2024: Top 5 Questions Answered for Investors

In late 2023, we looked ahead at ESG regulations in 2024 and predicted a busy year in terms of sustainability-related regulatory developments. And so far, 2024 has not disappointed. In a political environment characterized by polarization over ESG-re...

Articles October 17, 2024 • Oscar Gomez Fontana

Understanding Nature-Related Risks: Why Financial Institutions Need More Than Geolocation Data

Learn how financial institutions can better assess nature-related risks by integrating geolocation and production data, leading to more accurate risk evaluations and informed decision-making.

Articles October 17, 2024 • Lorenzo Saa

Navigating the Maze: Sustainable Investment Regulations, Tech, and the Quest for Actionable Data

As we reach the halfway point in this critical decade, it is imperative to reassess the record of public policy and private investment in tackling shared sustainability challenges. After all, the climate and biodiversity plans that governments must d...

Articles October 16, 2024

EU Pillar 3 ESG Disclosures: An Overview for Commercial Banks [2024 Update]

Discover how EU Pillar 3 ESG disclosures raise transparency in banking, with insights on meeting new sustainability reporting standards and regulations.

Articles September 23, 2024 • Ani Widham

MiFID II and IDD Sustainability Preferences Checklist: An Essential Tool for Financial Product Distributors in the EU

Distributors of financial products within the EU need to prepare for increase in regulatory attention for MiFID II and IDD sustainability requirements

Articles September 23, 2024 • Nico Fettes, Lucas Trenzado

Carbon Reporting Trends: Has Global Progress Stalled?

Despite Progress, Gaps in Scope 3 Emissions Disclosure and Data Quality Persist, Especially in Emerging Markets Key Takeaways Almost 80% of companies in the MSCI ACWI have recently disclosed their Scope 1+2 data, but only 60% of them reported at [&he...

Articles September 18, 2024 • Carlos Manchón PhD, Luis Angolotti CFA

Usability Challenges in Reported EU Taxonomy Data from Financial Institutions

A case study on insurance The European Taxonomy has been in force since January 2022, guiding investors towards more sustainable investments. In January 2024, the regulatory requirements expanded, introducing additional reporting obligations on Europ...

Articles September 5, 2024 • Thomas Willman, Pablo Diaz, Carlos Manchon, Jessica Tongue, Mouna Essikouti, Jaime Oliver

Over half of EU funds need to divest or change name in coming months

ESMA confirms three-month deadline to implement ESG guidelines for fund names Time is running out for funds to comply with ESMA’s guidelines around the use of ESG terms in fund names. Clarity AI research shows that more than half of […]

Articles August 23, 2024

The Next Frontier in Investment Management: GenAI for Smarter, More Efficient Portfolios

A case for integrating AI into sustainability data & analytics Generative AI (GenAI) could add to the economy between $2.6 trillion and $4.4 trillion annually while increasing the impact of artificial intelligence – the umbrella term for al...

Articles August 8, 2024

Enabling Efficiency in Sustainable Fund Regulatory Reporting

A study of gains from applying Generative AI to SFDR reporting Asset managers are spending increasing time on sustainability reporting, driven by demand from investors for sustainability-related products and growing regulatory reporting expectations....

Articles July 18, 2024 • Claudia Marin, Thomas Willman

Supreme Court Ruling Pours Further Cold Water on SEC Climate Disclosure Rules

The US Supreme Court recently issued three rulings¹ that could significantly limit the regulatory powers of federal agencies, including their authority to implement climate-related regulations. One of them is overturning the Chevron doctrine, which ...

Articles, Whitepapers July 10, 2024 • Patricia Pina, Renato Coelho

The Missing GHG Emissions: How Satellite Data Can Quantify the Real Climate Risk of Oil & Gas Companies

Less than 10% of companies report Scope 3 investment emissions data While a growing number of companies disclose sustainability-related information, there are still challenges around data completeness, consistency, and transparency. For example, all ...

Articles July 2, 2024 • Rafael Cifuentes, Amy Ingram, Magdalena Chullmir

The green revolution: How Company-Specific Data is Transforming Sustainability in Digital Banking

In today’s market, retail banks must rapidly adapt to meet customer needs and ensure a positive experience. In the sustainability realm, this is no different. Consumers, especially younger generations, care about the planet and they want banks ...

Articles June 28, 2024 • Andrés Cruz

Why Data Granularity is Crucial for Investing in the UN SDGs

Companies that contribute to Sustainable Development Goals (SDGs) are seen by many investors as strategic sustainable investments. However, without knowing the details of how these companies contribute to the goals, it is difficult to make investment...

Articles, Webinars June 26, 2024

Webinar Series: AI Essentials for Sustainable Investing

A guide to master advanced portfolio construction Explore how AI-powered techniques can enhance data collection, bridge information gaps, and enable better-informed investment decisions in the rapidly evolving landscape of sustainable investing. You&...

Articles, Whitepapers June 17, 2024 • Nico Fettes

Credible climate transition plans: Insights from an AI-driven analysis of corporate disclosures

Only 40% of companies disclose their decarbonization measures and quantify their contribution to emission targets Investors are increasingly focused on analyzing corporate climate transition plans due to their expected impact on long-term financial p...

Articles May 23, 2024 • Tom Willman, Mouna Essakouti, Pablo Díaz-Varela, Bruna Correa

Nearly half of the funds with environmental terms in their names may breach new EU regulations

44% of these funds are invested in assets that breach the Paris-aligned benchmark (PaB) exclusionary criteria In the first of a two-part series examining ESMA’s name rule restricting the use of ESG and sustainability-related terms in funds’ names...

Articles, Regulatory Mini Podcast May 23, 2024

Regulatory Update: FCA’s Guidance on SDR’s Anti-Greenwashing Rule

Transcript: The FCA’s anti-greenwashing rule comes into force at the end of this month, May 2024. The accompanying guidance was only published at the end of last month, giving firms little time to make any necessary adjustments to their sustainabil...

Articles May 22, 2024 • Tom Willman, Claudia Gotez

Your Last Minute Guide to Finalizing the SFDR Entity Level Reports

Still finalizing your SFDR report? Don’t miss these common mistakes As the June 30th deadline for submitting entity level Principal Adverse Impact (PAI) reports approaches, financial market participants (FMPs) must ensure compliance with the SFDR r...

Articles May 21, 2024

Easy SFDR Compliance: Generate Your Entity-Level Report in 2 Minutes

The entity-level report reflects how portfolios performed in 2022 against the Principal Adverse Impact indicators (PAIs). In an effort to streamline SFDR compliance, Clarity AI allows users to automatically pre-fill and download the official template...

Articles May 7, 2024 • Clarity AI and Next Gate Tech

A New Era in ESG Oversight: Clarity AI and Next Gate Tech Integration for SFDR Reporting

The Sustainable Finance Disclosure Regulation (SFDR) mandates asset managers to report on the sustainability impacts of their investments, focusing on Principal Adverse Impacts (PAIs). June 2024 marks the deadline for the second year reporting cycle ...

Articles May 1, 2024 • Gabriele Rossi

Simplifying Article 29 LEC: A Practical Overview for Financial Institutions in France

Since its implementation three years ago, Article 29 of France’s Energy and Climate Law (Article 29 LEC) has been essential in promoting transparency and accountability in the disclosure of climate-related and environmental risks by financial insti...

Articles, Regulatory Mini Podcast April 16, 2024

Regulatory Update: Trend of Rules for Female Representation on Boards

Transcript: Aligned with the broader goal of advancing social sustainability, there is a growing trend of regulations seeking to improve gender equality within the corporate world. One key initiative is the EU’s Gender Equality Strategy, which ...

Articles April 12, 2024 • ECOFACT and Clarity AI

The US SEC Climate Disclosure Rules: Stay Pending Review

On April 4, 2024, the US Securities and Exchange Commission (SEC) announced a delay in the implementation of its finalized rules on climate-related disclosures. This delay stems from legal challenges filed by several states and business groups su...

Articles April 8, 2024

Nasdaq Companies Subject to a “Comply or Explain” Basis with Board Diversity Rule

Nasdaq's board diversity rule mandates that most Nasdaq-listed companies have at least one woman on their board of directors or explain why they do not meet this requirement as of the end of 2023. By 2025 most Nasdaq companies will be required to hav...

Articles, Webinars March 27, 2024 • Lorenzo Saà and Austin Ritzel (Clarity AI)

Webinar: Are the UN SDGs a Blueprint for True Sustainable Investing?

In the third of three webinars in this series, the viability of UN SDGs as a blueprint for truly sustainable investing is discussed. What are the benefits (and urgency) of using the UN SDGs as a sustainable investment framework? How are they currentl...

Articles March 27, 2024 • Nico Fettes

Net Zero Solutions: Using AI for Assessing Climate Transition Plans

In the first article of our series on climate transition plans, we focus on the topic of AI and how it can accelerate and improve the assessment of Net Zero alignment

Articles March 22, 2024 • Clarity AI, Klarna

The Impact of AI: Shaping Sustainable Consumer Choices

In today’s climate change threat, the absence of robust data poses a challenge to consumers striving to adopt sustainable practices. In particular, access to detailed information about the environmental impact of products can help consumers bet...

Articles, Webinars March 21, 2024 • Ben Macdonald (CMSI Group), Greg Van Droogenbroeck (Lazard AM), Patricia Pina (Clarity AI)

Webinar: The Future of Sustainability Data in an AI-driven Market

Explore the dynamic data landscape in the sustainability industry and gain insight into the evolving needs and expectations of investors and their stakeholders as we navigate through key topics such as the demand for transparency in the sustainabilit...

Articles March 20, 2024 • Elena Armas, Sofia Antoniazzi, Pablo Díaz-Varela

Key ESG Learnings and Best Practices in the Fashion Industry

Addressing environmental and social challenges across the value chain is essential Transitioning to more sustainable business models starts with the identification of material environmental, social, and governance (ESG) issues. These include, on the ...

Articles March 15, 2024 • Ani Widham, Tom Willman

What Does this Year’s SFDR Deadline Mean for Private Markets?

While the implementation of CSRD will catalyze the availability of sustainability on private companies, many organizations will not fall into scope until 2025 and this does not account for the most private companies outside the EU. Thus, in the meant...

Articles, Regulatory Mini Podcast March 14, 2024

Regulatory Update: SEC and California Climate Rules

Transcript: On the 6th of March 2024 the US Securities and Exchange Commission -or SEC– FINALLY published its long awaited rule on climate-related disclosures. The rules will, for the first time, mandate that SEC registrants, mostly listed comp...

Articles March 8, 2024 • Gabriele Rossi

Non-Financial Disclosures: 50,000 Companies to Fall under CSRD by 2029

With more reported data flowing into the market, financial institutions need to develop mechanisms for ingesting and processing the data Ethical and responsible corporate practices are increasingly commonplace. This trend is driven by both a growing ...

Articles March 8, 2024 • Tom Willman

UK SDR Fund Labels Decoded: A Practical Guide for Asset Managers

The UK SDR is a major development for sustainable finance regulation globally. The labeling regime marks a departure from the EU’s SFDR and it is an approach that we expect will be mimicked by jurisdictions across the globe in the coming years. By ...

Articles, Webinars March 7, 2024 • Monika Freyman. (Addenda Capital), Ángel Agudo (Clarity AI)

Webinar: Building Sustainability Credentials — Can AI End Greenwashing?

In the second of three webinar in this series, the risk of greenwashing in sustainable investing is discussed. What is it and why is it still prevalent? With heightened public scrutiny, especially in the European and North American markets, how can a...

Articles March 7, 2024 • Silvia Hernández, Elena Armas

How Effective Are Policies on Board Gender Diversity?

Organizations with established policies tend to have a substantially higher share of female members on their boards Clarity AI performed an analysis to determine whether board gender diversity policies are indeed effective in increasing female board ...

Articles February 29, 2024

Aligning Revenues to the UN SDGs: How Can Investors Unlock Market Value and Reduce Reputational Risk?

Global progress on the 17 Sustainable Development Goals (SDGs) and 169 targets set by the United Nations member states in 2015 is markedly off track from 2030 targets. Only 15% of SDGs targets are on track, according to the 2023 special edition of th...

Articles, Webinars February 15, 2024 • Gregory Van Droogenbroeck (Lazard Asset Management), Marsal Gavaldà (Clarity AI)

Webinar: AI-Powered Sustainability: Seizing Investment Opportunities for 2024

The Artificial Intelligence revolution is already having transformative effects across many sectors of the economy. AI is expected to contribute an astounding $15.7 trillion to the global economy by 2030, according to PwC. Embracing AI techniques emp...

Articles, Regulatory Mini Podcast February 9, 2024

Regulatory Update: Swiss Ordinance on Climate Disclosures

Transcript: On the 1st of January 2024, the Swiss Ordinance on Climate Disclosures came into effect. The Ordinance on Climate Disclosures forms part of the Swiss Code of Obligations, passed in 2020. Under the Ordinance, in scope entities must report ...

Articles February 2, 2024 • Andrés Cruz, Ani Widham, Austin Ritzel

Beyond Good Intentions: The Role of SDG Misalignment Analysis

Investors need to perform a dual-lens analysis to ensure true alignment of their investments to the UN Sustainable Development Goals (UN SDGs) Just as investors do not invest in companies where they know only the assets, and not the liabilities, [&he...

Articles, Webinars January 29, 2024 • Stéphane Janin (AXA Investment Managers), Tom Willman (Clarity AI)

Webinar: Sustainability Reporting Standards — Convergence or Divergence?

In the first webinar in the CFA Institute and Clarity AI series, the complexity of reporting standards is discussed. As more standards arise across the globe, are they becoming more convergent or divergent?

Articles, Regulatory Mini Podcast January 26, 2024

Regulatory Update: 2024 sustainability Reporting: Alignment to the EU Taxonomy and Preparation for CSRD

Transcript 2024 is already proving to be a very busy year for sustainable finance regulation. One of the biggest developments relates to the first reporting period for companies subject to the Corporate Sustainability Reporting Directive -or CSRD-. O...

Articles, Webinars January 24, 2024

Webinar: Navigating the 2024 ESG Regulatory Landscape across Global Markets

With an increasing number of ESG regulations and standards emerging worldwide, companies and financial market participants must understand their implications to effectively incorporate sustainability considerations into their business practices and o...

Articles January 19, 2024 • Luis Sanguineti, Ceila Falcón, Mouna Essakouti, Pablo Díaz-Varela

Unveiling the Trends: A Snapshot of Armament Manufacturing Investments in the Past Year

Over the past year, there has been an 11% increase in the count of funds investing in armament manufacturing companies In 2023, we have continued to witness crises and wars throughout the globe. Given this global context, Clarity AI performed [&helli...

Articles, Regulatory Mini Podcast December 27, 2023 • Tom Willman

Regulatory Update: 2024 Outlook

Clarity AI -in collaboration with ECOFACT- recently published its 2024 regulatory outlook. It contains a comprehensive global preview of the major regulatory changes in sustainable finance we can expect in 2024. Here are 5 highlights.

Articles December 22, 2023 • ECOFACT and Clarity AI

Quick Take on the ESG Regulatory Landscape in 2024: Part 2 – US and APAC

A Guide for Companies and Market Participants Regulation is increasingly shaping how the corporate world and the financial sector must integrate environmental, social, and governance (ESG) considerations into business practices. Knowing that sustaina...

Articles December 22, 2023 • ECOFACT and Clarity AI

Quick Take on the ESG Regulatory Landscape in 2024: Part 1 – Europe

Articles December 22, 2023

ESG Product Round-up: 2023 Highlights to Advance Sustainable Finance

Recap of some of Clarity AI’s new features and solutions launched in 2023 This year, we launched new products and enhanced existing ones to support market participants in aligning with the ever-changing demands of global markets in sustainability a...

Articles, Regulatory Mini Podcast December 15, 2023

Regulatory Update: Amendments to the RTS of the SFDR

The European institutions continue to undertake major surgery on the SFDR. On the fourth of December, the European supervisory authorities -or ESAs- put forward their amendments to the regulatory technical standards of the sustainable finance disclos...

Articles December 14, 2023 • Walter Alzurutt, Luis Angolotti

EU Taxonomy Reporting: Maximizing Coverage with High-Quality Supplementary Data

How public disclosures help address the information gap for companies not reporting Taxonomy Alignment The financial sector continues to play a central role in the EU’s efforts to become Net Zero by 2050, including through the sector’s central ro...

Articles, Regulatory Mini Podcast December 13, 2023

Regulatory Update: UK Sustainability Disclosure Requirements

The UK FCA has just finalized its Sustainable Disclosure Requirements, or SDR, aimed at supporting end investors to navigate the investment product landscape and ultimately reduce greenwashing and enhance consumer trust.

Articles December 11, 2023 • Anya Pineau, Thomas Willman, Alicia León Molina, Andrés Olivares, Ignacio Tamarit

Breaking the Perception of ESG Data Estimations

Estimations can help address ESG data challenges to unlock value for the private markets In recent years ESG has been a fixture in the headlines, with heightened interest from investors and growing concerns about the potential for greenwashing. The n...

Articles December 7, 2023 • Andrés Cruz, Ani Widham

Granularity on SDG Alignment is Needed to Find an Edge in Sustainable Investment

A deeper analysis of companies’ contribution to SDGs can better inform engagement strategies and improve stakeholders’ communication So long as achieving the UN Sustainable Development Goals (SDGs) still requires an estimated annual inves...

Articles, Whitepapers December 5, 2023 • CDP and Clarity AI

Stronger together: Exploring the EU Taxonomy as a Tool for Transition Planning

CDP and Clarity AI analyze how the EU Taxonomy KPIs relate to the real economy transition In 2023, the full disclosure of EU Taxonomy metrics in annual reports became mandatory for companies subject to the EU’s Non-Financial Reporting Directive (NF...

Articles December 1, 2023 • Mónica Ramirez, Tom Willman, Pablo Díaz-Varela

3 Lessons Learned Using AI about the SFDR’s First Wave of Entity-Level PAI Reporting

Addressing the main challenges of SFDR entity-level PAI reporting On June 30th, the Sustainable Finance Disclosure Regulation (SFDR) entity reporting period concluded, marking the first deadline for applicable Financial Market Participants (FMPs) (1)...

Articles, Webinars November 30, 2023 • CDP and Clarity AI

Webinar: Power in Synergy: Exploring the EU Taxonomy as a Tool for Transition Planning

In 2023, financial markets accessed EU Taxonomy alignment disclosures for the first time, introducing unprecedented granularity in reported sustainability data. In this webinar, hosted by Clarity AI and CDP, we unveiled a joint report exploring the a...

Articles November 30, 2023 • Jean-Charles Prabonneau

Navigating Net Zero: A Guide to the Financial Industry Frameworks

Uncover insights on major financial frameworks for informed investment decisions aligned with specific objectives The financial industry has a lower level of GHG accounting maturity compared to corporates, which have had standards for over 15 years. ...

Articles, Webinars November 23, 2023 • TNFD, WHEB Asset Management and Clarity AI

Webinar: Bridging the Gap: Integrating TNFD Recommendations into Decision-Making

The recently launched TNFD (Taskforce on Nature-related Financial Disclosures) final recommendations are set to be a pivotal framework for financial institutions, providing a foundation for addressing impacts and risks associated with nature and biod...

Articles November 17, 2023 • Thomas Willman, Mariola López

Examining the TNFD: An Overview of Biodiversity and Nature

The final TNFD framework – along with sector-specific guidance for financial institutions – was published in September 2023. In combination, the two documents assist financial institutions to analyze and disclose nature-related risks and ...

Articles November 10, 2023 • Gabriele Rossi

Singapore vs EU: Color-Coded Alignment Adds Complexity to the Interoperability of Global Sustainability Taxonomies

A sustainable taxonomy is a framework used to identify and classify economic activities based on their sustainability attributes Often recognized as a gold standard in this domain, the European Taxonomy is considered an example of taxonomy developmen...

Articles November 3, 2023

AI’s Role in Making ESG Data More Reliable

AI can play an important role in providing quality data with automation and scale for asset managers’ ESG-minded client portfolios.

Articles October 27, 2023 • EY and Clarity AI

EU Taxonomy Reporting: Assessing Progress and Charting the Path Forward

Access the paper to delve into EU Taxonomy data reported by over 1,400 companies, and to grasp some of the implications of the regulatory framework Evaluating the intricacies of the EU Taxonomy reporting exercise requires a thoughtful analysis that g...

Articles October 5, 2023 • Andrés Olivares, Henry (Chun-Yu) Lin, Alejandro Fernández

Do Article 9 Funds Invest in More Companies Involved in Human Rights Controversies than Article 6 and Article 8 Funds?

Is poor policy or heightened brand scrutiny to blame? In a world where ESG factors guide investment choices and new categories of sustainability-focused funds emerge we explore whether investors’ expectations on the companies within these funds are...

Articles September 28, 2023 • Elena Armas, Sofía Antoniazzi

National Oil Companies Lag Behind Peers in Environmental and Governance Indicators

Investors need to go beyond aggregated views on ESG performance to understand underlying risks National Oil Companies (NOCs) are major players in the oil and gas sector, responsible for producing more than 50% of the world’s oil and gas and [&h...

Articles September 15, 2023 • Andres Olivares, Berenice Altobello

1 in 5 companies have disparities between CDP GHG emissions reporting and their Sustainability Reports

Roughly 20% of instances showed significant variations of over a 50% difference in their values As the world transitions to a low-carbon economy, investors are recognizing the need to incorporate environmental, social, and governance (ESG) factors in...

Articles, Webinars September 14, 2023

Webinar: Leveraging a Multi-dimensional Approach to Decarbonize Portfolios and Achieve Net Zero Alignment

There are many frameworks that aim to bring together indicators for assessing Net Zero targets. We believe that Net Zero alignment cannot be achieved only by using one metric, but by using a multi-dimensional approach instead, to have a 360 view on...

Articles August 31, 2023 • Gabriele Rossi

EU Taxonomy: Bridging the Gap Between Climate and Other Environmental Objectives

Starting January 2024, companies are required to report on eligibility for all 6 environmental objectives of the EU Taxonomy The European Union has been at the forefront of global environmental initiatives, from its ambitious climate goals to its pio...

Articles August 30, 2023

How to Assess Company Targets Efficiently with Net Zero Tools

Assessing company targets with the Net Zero Investment Framework (NZIF) There are many frameworks that aim to bring together indicators for assessing company targets, including the SBTi for Financial institutions and the NZIF, which is the framework ...

Articles August 25, 2023

ESG Scores vs ESG Ratings: How Are They Different?

To simplify the complexity of ESG metrics, that provide a comprehensive view of a company's sustainability practices, two methodologies emerged: scores and ratings.

Articles August 22, 2023 • Oscar Gomez Fontana

Challenges and Solutions for the EU Taxonomy’s Minimum Safeguards Criteria

Using advanced technology to address EU Taxonomy’s minimum safeguards reporting The EU Taxonomy is a standardized classification system for identifying environmentally sustainable activities. An activity is ‘eligible’ when it fits t...

Articles August 16, 2023 • Pablo Diaz-Varela Pena, Luis Sanguineti

Only 1.5% of Global Investment Funds Are Aligned with a 1.5ºC Scenario and None Are Aligned when Scope 3 is Considered

There is a transition to a lower temperature but assets are still not aligned with Paris Agreement The Paris Agreement, adopted in 2015, is an international treaty under the UNFCCC to combat climate change. It aims to limit global temperature [&helli...

Articles August 14, 2023 • Gabriele Rossi

Singapore vs EU: Similarities and Differences Between Taxonomies

Analyzing the approach of Singapore’s and the EU’s classifications for sustainable finance Sustainable finance taxonomies play a crucial role in guiding investments towards environmentally and socially responsible activities. Though at different ...

Articles, Webinars August 10, 2023 • BlackRock and Clarity AI

Webinar: Optimizing UN SDG Alignment through Revenue Assessments

The latest Clarity AI research highlights a significant gap between the intentions of the UN Sustainable Development Goal funds and their impact in countries with the greatest need for sustainable development. On average, companies in SDG funds sel...

Articles August 9, 2023 • Gabriele Rossi

Spotlight on the ASEAN Region: Sustainability-related Disclosures Decoded

Understand the impact of non-financial disclosures on ASEAN's growing economy with this summary of the progress made so far, and potential challenges for investors to report on sustainability.

Exclusive

Articles July 26, 2023 • Renato Coelho, Dr. Guillermo Velázquez, Dr. Swapna Panda

Implementing the TNFD LEAP-FI Approach

Get a practical view of how asset managers can use Clarity AI tools to assess nature-related opportunities, risks, impacts and dependencies of their portfolios.

Articles July 20, 2023 • Ángel Agudo, Patricia Pina, Juan Diego Martin, Ron Potok, Chris Ciompi

Spotlight: Data Quality – Dimension 8, Feedback

Series of interviews with Clarity AI executives, to explore and explain each of the 8 dimensions used to ensure sustainability data is of the highest quality.

Articles July 17, 2023 • Ani Widham, Andrés Cruz, Renato Coelho, Lucía Vega-Penichet

Companies Included in SDG Funds Are Not Generating Economic Activity in Countries That Need It Most

Research by Clarity AI found that companies in SDG funds sell less than 1% in the countries that need the most

Articles July 13, 2023 • Tom Willman

Quick Take – Tips on the ISSB’s IFRS S1 and S2

The release of these standards marks a huge milestone for sustainability disclosures globally. Here's everything you need to know to stay up-to-date.

Articles, Webinars July 12, 2023 • BBVA, CDP and Clarity AI

Webinar: Assessing the Effectiveness of the EU Taxonomy

Experts from the Platform on Sustainable Finance, BBVA and Clarity AI discuss the effectiveness of the EU Taxonomy, and how can market participants accelerate sustainable finance.

Articles July 12, 2023 • Guillermo Velazquez, Jaime Oliver

Measuring ESG Risk: ESG Controversies Lead to a 2% to 5% Stock Underperformance after Six Months

Analysis finds correlation between ESG Risks derived from Controversies and market underperformance. Clarity AI controversies predict loss of company value in the mid-term, with an average impact of -5% for high severity incidents.

Articles July 6, 2023 • Ángel Agudo, Patricia Pina, Juan Diego Martin, Ron Potok, Chris Ciompi

Spotlight: Data Quality – Dimension 7, Point in Time

An Interview Series with Clarity AI Executive Team on the 8 Dimensions of Data Quality How does Clarity AI ensure its data is of the highest quality? Clarity AI uses an 8-dimension framework to ensure data is of the highest […]

Articles June 22, 2023 • Ángel Agudo, Patricia Pina, Juan Diego Martin, Ron Potok, Chris Ciompi

Spotlight: Data Quality – Dimension 6, Consistency

Articles June 21, 2023 • Victor Fernandez and Thomas Willman

EU Taxonomy: Explaining New Requirements Due January 2024

Answering Frequently Asked Questions about New EU Taxonomy Regulatory Requirements The EU Taxonomy regulatory requirements were implemented in January 2022, but until recently only two out of the six environmental objectives have been established. Mo...

Articles, Webinars June 21, 2023

Webinar: How Can Investors Effectively Tackle Biodiversity?

Biodiversity-themed funds have gained nearly $1 billion in assets this year, indicating the growing recognition of the financial industry’s role in mitigating biodiversity risks. So what exactly does “biodiversity” encompass and what is the goa...

Articles June 15, 2023 • Tom Willman

Quick Take: The European Commission’s Proposal on ESG Ratings and Potential Regulation

Managing conflicts of interest and increasing transparency are in full focus On June 13, 2023, the European Commission (EC) released its proposed framework for the regulation on the transparency and integrity of Environmental, Social and Governance (...

Articles June 13, 2023

Mastering ESG Metrics, Scores, and Ratings: How to Effectively Build Sustainable Portfolios

Integrating ESG into investment strategies has become the norm, and technology can help democratize access to ESG information.

Articles June 8, 2023 • Ángel Agudo, Patricia Pina, Juan Diego Martin, Ron Potok, Chris Ciompi

Spotlight: Data Quality – Dimension 5, Explainability

Articles June 5, 2023 • Tom Willman, Claudia Goetz

Global Sustainability Regulatory Round-up: Updates for Asset Managers, Asset Owners and Wealth Managers

From SFDR developments to delays at the SEC to biodiversity in Japan – it’s been a busy month for sustainability regulations Last month witnessed significant sustainability regulatory developments across the globe, especially in relation to the E...

Articles June 1, 2023 • Ángel Agudo, Patricia Pina, Juan Diego Martin, Ron Potok, Chris Ciompi

Spotlight: Data Quality – Dimension 4, Data Updates

Articles May 31, 2023 • Amy Ingram

Three Surprising Ways to Reduce your Carbon Footprint

A majority of people say they’re willing to pay more for sustainable products, but nearly the same proportion of people say they aren’t sure which products are sustainable. This is no surprise given mounting greenwashing allegations and the compl...

Articles May 22, 2023 • Ángel Agudo, Patricia Pina, Juan Diego Martin, Ron Potok, Chris Ciompi

Spotlight: Data Quality – Dimension 3, Accuracy

Series of interviews with Clarity AI executives, to explore and explain each of the 8 dimensions used to ensure sustainability data is of the highest quality.

Articles May 19, 2023 • Oscar Gomez Fontana

EU Taxonomy Reporting: First look at the 2022 reported alignment of 400 European companies

The numbers are in! Companies are taking the EU Taxonomy regulation seriously and are actively working to align with it. As the world becomes increasingly aware of the impact of climate change, companies in the European Union are under more […...

Articles, Webinars May 17, 2023 • Tom Willman, Renato Coelho

WEBINAR – Overcoming Regulatory Confusion: Understanding Sustainable Investment Fund Frameworks

Regulators have been busy designing their respective regulatory regimes to ensure that capital can flow efficiently to sustainable companies. That objective is extremely complex even more difficult when we take into account that many investors have ...

Articles, Whitepapers May 17, 2023 • Patricia Pina, Tom Willman, Renato Coelho, Bruna Correa, Lucia Vega-Penichet

Overcoming Regulatory Confusion: A Study of EU, UK and US Sustainable Investment Fund Frameworks

A Study of EU, UK, and US Sustainable Investment Fund Frameworks.

Articles May 16, 2023 • Renato Coelho

Analysis of Funds uses PAIs to Reveal Significant Differences Across Product Categories and Geographies

Performance and Strategy Across 27,000 Article 6, 8, and 9 Funds For socially responsible investors seeking to invest in companies that align with specific environmental and social goals, Article 9 funds (commonly referred to as dark green) have been...

Articles May 9, 2023 • Serhat Öngen

How Biodiversity Fits into the Global Climate Agenda

Navigating financial and political hurdles in the fight for biodiversity conservation and expansion What is biodiversity and why is it important? Biodiversity refers to the variety of living organisms, including plants, animals, and microorganisms, t...

Articles May 8, 2023 • Ángel Agudo, Patricia Pina, Juan Diego Martin, Ron Potok, Chris Ciompi

Spotlight: Data Quality – Dimension 2, Freshness

Series of interviews with Clarity AI executives, to explore and explain each of the 8 dimensions used to ensure sustainability data is of the highest quality.

Articles April 27, 2023 • Ángel Agudo, Patricia Pina, Juan Diego Martin, Ron Potok, Chris Ciompi

Spotlight: Data Quality – Dimension 1, Coverage

Articles April 18, 2023 • Luis Angolotti

The Fossil Gas Debate Turns to the Courts: Alignment under the EU Taxonomy

The Step Towards Banning EU labelling of fossil gas as ‘sustainable’ in the EU Taxonomy. In January of this year, fossil gas electricity generation was included in the EU Taxonomy as one of many activities that could potentially be considered [&h...

Articles April 18, 2023

Guide: Assess and Report on the Sustainability of your Portfolio, According to Article 2(17) of the SFDR

Whether you already have a solution or are looking for one, here's a breakdown of the boxes you need to check to see if your investments qualify as sustainable.

Articles April 12, 2023

Why Incorporating ESG Metrics into Governance is Essential for Boards of Directors

Four key benefits of using ESG data that will drive long-term success in organizations Boards of Directors play a crucial role in the governance of a company, responsible for overseeing the management team and making strategic decisions to ensure the...

Articles April 11, 2023 • Tom Willman

Dissecting Singapore’s Sustainability Reporting

5 Frequently Asked Questions and Their Answers What’s the overview on Singapore’s green taxonomy? In 2019, Singapore launched a Green Finance Action Plan, which included a commitment to develop a green taxonomy to support sustainable finance. A g...

Articles, Webinars March 30, 2023 • Lydia Pinnell, Roman Vital (Rahn+Bodmer)

Webinar: Integrating Sustainability into the Client Investment Experience

Integrating sustainability into a client’s investment experience, in a way that your advisors and client’s value and understand, could be a key step in strengthening the client relationship but how can you start this process? In this webi...

Articles March 27, 2023 • Tom Willman

Quick Take: Global Sustainability Regulation Developments for March 2023

A summary overview of recent sustainable finance developments across Asia-Pacific, Europe, and the Americas There are several regulatory developments in sustainability to highlight this month that cross country lines and impact Europe, the Americas a...

Articles March 24, 2023 • Tom Willman, Claudia Goetz

Sustainable Finance Regulation in the US: Demystifying SEC’s Key Rule Changes

Exploring the US Securities and Exchange Commission Sustainability Related Proposals Introduction: The US Securities and Exchange Commission (SEC) recently confirmed expected dates for three proposed rules aimed at standardizing the approach to ESG p...

Articles March 22, 2023 • Lucía Vega-Penichet

Understanding the Impact of Water: Water Consumption vs Water Withdrawal

Identifying where investors need to focus to get a holistic view of water impact In recognition of World Water Day, Clarity AI wanted to analyze the most common water related metrics, specifically those metrics that track progress and make improvemen...

Articles March 8, 2023

Board Gender Diversity and Corporations’ Gender Pay Gap

Clarity AI performed an analysis to uncover whether organizations with greater female board representation also have a greater number of women employees and a smaller pay gap. The research found that organizations with greater than 40% female board r...

Articles March 3, 2023 • Oscar Gomez and Luis Angolotti

Are green bonds aligned with the EU Taxonomy?

After analyzing the EU Taxonomy alignment of over 17,000 green bonds, we have found that 22% of the corporate green bond market is aligned with the EU Taxonomy, primarily from those financing renewable energy projects. Most of the green bonds have mu...

Articles, Webinars February 24, 2023 • Jean Charles Prabonneau, Grace Brennan, Stephan Freelink (Finner)

Webinar: How Can Advanced Technology Help Source Scope 3 Data

Because Scope 3 emissions happen outside of a company's direct control, it is harder to access exhaustive and reliable data. However accounting for these carbon emissions is paramount to fighting climate change. In this webinar, experts from Clarity ...

Articles February 10, 2023 • Tom Willman

A Challenger Is Rising Up to Become the New Regulatory Leader: Switzerland

The global regulatory landscape has been dominated by the EU but now Switzerland is aiming to set themselves apart as a leader in sustainable finance The European Union has been a leader in terms of the development of sustainable finance […]

Articles February 9, 2023 • Andrea Hermida

Tackling Scope 3 Emissions: A Critical Step Towards Carbon Neutrality

Questions and gaps persist on how to measure value chain or Scope 3 emissions, despite being essential to achieving decarbonization plans.

Articles February 7, 2023 • Almudena Hellin, Jaime Oliver

How Are OECD Companies Faring When it Comes to CO2 Emissions?

Clarity AI's Research team has compared CO2 emissions for OECD and Non-OECD countries, across all scopes. While OECD companies present a smaller intensity of Scope 1 and Scope 2 emissions, Scope 3 is substantially higher, accounting for 88.42% of the...

Articles February 3, 2023

Greenwashing: A Quick Look at Some Key Regulations

Although there is no agreed upon definition of Greenwashing, it generally refers to the practice of making false or misleading environmental claims to market products or services to consumers who are becoming increasingly environmentally conscious.

Articles February 2, 2023 • Jean-Charles Prabonneau

Scope 1, Scope 2, and Scope 3 Carbon Emissions: How 80% Go Unreported or Uncounted

In collaboration with Reuters, Clarity AI, Climate Research Lead, Jean-Charles Prabonneau sat down to discuss how we define Scope 1, 2, and 3 emissions and how to leverage AI to help in climate analysis.

Articles January 31, 2023 • Tom Willman

SFDR: Breaking Down the Level Two Regulatory Technical Standards

From January 1, 2023, the ”level two regulatory technical standards” (RTS) for SFDR began to apply. This means that in-scope asset managers need to begin reporting using the templates included in Annex 1 - 5 of the RTS here.

Articles January 30, 2023 • Renato Coelho, Ani Widham

Only 14% of Article 9 Funds with an EU Taxonomy objective report on EU Taxonomy alignment

Clarity AI reviewed EETs from 356 Article 9 funds that have provided periodic reporting data in their EETs since October 2022. Out of those funds, 57 report having an EU Taxonomy Alignment objective that is greater than 0, but only […]

Articles January 25, 2023 • Ángel Agudo

Tracking Performance Against the UN SDGs

In collaboration with Reuters, Clarity AI, VP of Product, Ángel Agudo sat down to discuss how companies can work to incorporate the UN SDGs in their analyses. Read the full article

Articles, Webinars January 19, 2023 • James Alexander (UKSIF), Chris Dodwell (Impax AM), Thomas Willman and Johanna Conil-Lacoste (Clarity AI)

SDR: How Can the UK Build an Effective Regulatory Framework?

The UK has a unique opportunity to build a robust regulatory framework, in light of the SFDR already implemented in the EU. Experts from UKSIF, Impax AM and Clarity AI discuss the market expectations on the Sustainability Disclosure Requirements (SDR...

Articles January 17, 2023 • Patricia Pina, Thomas Willman, Renato Coelho

Article 9 Funds: Uncovering Data Inconsistencies in EET Disclosures

A new analysis by Clarity AI’s team on sustainable funds raises concerns around disclosure levels and data quality.

Articles January 11, 2023 • Austin Ritzel

2023 Davos Preview: A Path to Action

While Davos remains among the most exclusive events of the year, it has recently transformed into a conference of increasingly inclusive themes. Recent iterations have orbited issues of gender equality, the challenges of developing nations, global po...

Articles January 10, 2023 • Luis Angolotti

EU Taxonomy: How to Report on Fossil Gas-Related Activities

Nuclear power and fossil gas are now part of the EU Taxonomy reporting On January 1st, 2023, six new activities related to nuclear power and fossil gas officially became part of the EU Taxonomy (1). Companies eligible for those activities are [&hell...

Articles December 29, 2022

Within Frameworks: The Language of Sustainability is Data

How Private Market Investors Can Integrate Sustainability into their Investment Decisions eFront®, a part of BlackRock® and Clarity AI invite you to a webinar that explores the power of a comprehensive tech kit to deliver sustainability integration...

Articles December 20, 2022 • Victor Fernandez

Reliable Reporting for SFDR as Enabled by Advanced Technology

Sustainability Data Must Be Used for Purpose for SFDR Reporting, Especially for Mandatory PAIs The market demand for sustainable investing is large. The value of sustainable investment in major financial markets globally stood at $35.3 trillion, acco...

Articles December 16, 2022 • Andres Olivares, Camila Mateo Volkart

France Leads EU Gender Diversity on Board of Directors – Italy Quickly Closing the Gap

In the corporate world, Boards of Directors have traditionally had a much higher percentage of male members vs. female members. Research we released this past summer showed that worldwide, more than 17% of Boards still have no female members at [&hel...

Articles December 16, 2022

Beyond SFDR Reporting: Analyze and Benchmark Your ESG Performance

Clarity AI helps firms expand their business intelligence with reliable and comparable SFDR data A recent survey conducted by EY around SFDR and EU Taxonomy shows that 77% of firms are looking to become market leaders in ESG to accommodate […]

Articles December 12, 2022 • Tom Willman

The European Supervisory Authority further clarifies SFDR and Taxonomy regulation – but key questions still remain

The ESA releases “Questions and answers (Q&A) on the SFDR Delegated Regulation” The European Supervisory Authority (ESAs) released their response to the European Commission’s questions on SFDR. The questions and answers (Q&A) on the SFD...

Articles, Webinars December 7, 2022 • Tom Willman, Renato Coelho

Clarity AI Webinar: Just How Sustainable Are Article 9 Funds

European regulatory authorities are leading the global transition to a more sustainable economy through multiple linked regulatory initiatives, all seeking to manage capital flows toward sustainable investments. Central to this has been the Sustainab...

Articles December 7, 2022 • Thomas Willman

Expanding beyond the Non-financial Reporting Directive (NFRD) and introducing the Corporate Sustainability Reporting Directive (CSRD)

Decoding the impact of the Corporate Sustainability Reporting Directive (CSRD) The European Parliament adopted the Corporate Sustainability Reporting Directive (CSRD) on 10 November. The CSRD is Europe’s disclosure regime for non-financial corpor...

Articles December 1, 2022 • Thomas Willman

Explaining the FCA’s Consultation Paper on the UK’s Sustainable Disclosure Requirements (SDR)

What’s new from the FCA’s consultation paper, and how does SDR compare to the EU’s SFDR? The FCA published its delayed Sustainable Disclosure Requirements (SDR) consultation paper (CP). SDR will mandate the disclosures that different sustainabl...

Articles, Whitepapers November 18, 2022 • Patricia Pina, Ron Potok, Ignacio Tamarit, Bruna Correa

How Advanced Technology Can Increase Data Reliability

Only about 17% of those publicly listed companies report their direct emissions. But those 6,500 companies emit about 74% of the Scope 1 emissions of the full universe of public companies. So while we donʼt have all the data weʼd like to, the good ...

Articles November 11, 2022 • Oscar Gomez Fontana, Luis Angolotti

EU Taxonomy Reporting: First Signs of European Utilities Going Greener

The current trend looks promising, but only 25% of utilities in the EU are reporting any alignment at all In our last article on the EU Taxonomy, we highlighted which countries and sectors were the leaders and the laggards on […]

Articles, Whitepapers November 3, 2022 • Patricia Pina, Thomas Willman, Renato Coelho, Lucía Vega-Penichet, Elena Armas

SFDR: 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

Articles November 1, 2022

How to Source the Right Data for Green MIFID Compliance

Complying with the new directive brings higher costs, including employee training, and change management. Turning to a tech-powered solution can help compliance without adding complexity.

Articles October 28, 2022

What Does the NFRD Mean for Professional Investors?

EU Taxonomy requires financial market participants to identify and exclude NFRD companies in their reporting. The “Non-Financial Reporting Directive (NFRD)” was created to bring more transparency into the social and environmental performance of l...

Articles October 28, 2022

EU Taxonomy Reporting: Incorrect Use of NACE Codes Can Lead to Greenwashing

The European Commission warns once again about the risks of solely relying on NACE codes for EU Taxonomy reporting As organizations classify EU Taxonomy activities there is a natural tendency to overestimate eligibility. If you don’t examine each a...

Articles October 27, 2022

Sustainability and ESG Reporting: Public Companies Are Still Disclosing at Low Levels

Worldwide, approximately only 30% of public companies disclose at least one quantitative sustainability metric While reporting for sustainability may seem complex, technology can often provide a solution for companies not yet reporting. Additionall...

Articles October 20, 2022

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 Sustainable Finance Disclosure ...

Articles October 19, 2022 • Oscar Gomez Fontana, Luis Angolotti, Patricia Pina

EU Taxonomy Reporting: The Leaders and the Laggards

On January 1st, 2022, the EU Taxonomy entered into force, requiring companies under the Non-Financial Reporting Directive (NFRD) to disclose, over the course of 2022, the percentage of their activities that are eligible for the EU Taxonomy under the ...

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Articles October 19, 2022 • Oscar Gomez Fontana, Luis Angolotti, Patricia Pina

EU Taxonomy Reporting: The Leaders and the Laggards

Articles October 14, 2022 • Edward Vizard (Manaos) and Margarita Limcaoco (Clarity AI)

EET Reporting: How Advanced Technology Can Help You

SFDR and EU Taxonomy regulations bring challenging concerns around data standardization. The EET is good news for investors looking to scale ESG data. The race to find proper data providers with the right set of data points and issuer coverage has be...

Articles October 3, 2022

EU Taxonomy: Looking for Efficient, Accurate Reporting?

Ensure your EU Taxonomy report is accurate and save time and money by leveraging technology Whether you are looking for a more efficient way to report on EU Taxonomy, the broadest data coverage in the market, or the most reliable […]

Articles September 29, 2022

MiFID II Decoded: What the New Requirements Mean for the Future of Sustainable Investing

And how to navigate the complexity of the MiFID II regulation The demand for and sophistication of sustainable investment offerings continues to grow. The new addition to MiFID II applicable since August 2 is set to have deep and wide-ranging [&helli...

Articles September 19, 2022 • Rebeca Minguela, CEO and Founder, Clarity AI

Patagonia Can’t Save the Planet. Fast-fashion – and You – Could

This week, Yvon Chouinard – the Chairman of Patagonia – announced that he will be donating the entire company, worth $3 billion, to fight climate change. Social networks were on fire sharing the news and supporting Chouinard – CEOs, fashion [&h...

Articles September 7, 2022

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 Regulatory Technical Standards (RTS...

Articles September 1, 2022

Social capital as a network measure provides new insights on economic growth

Articles August 25, 2022

Overcoming the Limitations of ESG Data and Ratings

Leveraging technology to overcome ESG data challenges Being a newcomer to a market can be a significant challenge, as strong barriers to entry might exist. On June 27, 2022, ESMA published a letter that it sent to the European Commission […]

Articles August 11, 2022

EU Taxonomy: Sourcing Reliable, Accurate Data Through Technology

Using natural language processing for improved EU Taxonomy solutions As a common classification system for sustainable economic activities, the EU taxonomy is a pioneer in the field and will be instrumental in achieving the emissions reduction and mi...

Articles August 5, 2022 • Luis Angolotti and Serhat Öngen

The EU Taxonomy’s Data Hierarchy: Decoding Reported, Equivalent and Estimated Data

How Clarity AI’s EU Taxonomy solution can help you distinguish data types Together, the EU Taxonomy and SFDR regulations create rules for how financial market participants (mainly asset managers) have to disclose sustainability-related informat...

Articles August 3, 2022

Opaque ESG ratings are no longer satisfying investors, regulators and corporate leaders

Independent research firm releases report on ESG ratings solutions In a recent report, The Forrester New Wave™: ESG Ratings, Data, And Analytics, Q3 2022, the independent research firm outlines that “Opaque ESG ratings are no longer satisfyin...

Articles August 3, 2022

La falta de transparencia en las calificaciones ASG ya no convence a inversores, reguladores ni grandes empresarios

Consultora independiente publica informe sobre soluciones de calificaciones ASG En su informe “The Forrester New Wave™: ESG Ratings, Data, And Analytics, Q3 2022”, la consultora independiente Forrester destaca que “la falta de transparenc...

Articles August 3, 2022

Shop Sustainably: Consumers’ Contribution to Mitigate Climate Change

How transparent sustainability reporting can empower consumers With an expected 20% of total retail sales to be executed online in 2022, the e-commerce market will reach $5.5 trillion in 2022 and continue to grow to $7.4 trillion by 2025, representin...

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Articles August 3, 2022

Four Steps to MiFID II Compliance

A simple MiFID II solution Financial advisers are now held accountable for their clients’ sustainability preferences, on top of clients’ overall risk profile, currently collected through the suitability assessment. This new addition is applicab...

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Articles August 3, 2022

Cómo cumplir con la nueva directiva de MiFID II, paso a paso

Los asesores financieros ya tienen que tener en cuenta las preferencias de sus clientes en materia de sostenibilidad, más allá del perfil de riesgo, que ya se recogía en el test de idoneidad. Este cambio entró en vigor el pasado […]

Articles July 29, 2022 • Clarity AI and eFront® Insight

Quantitative Data, Standardized Frameworks, and Value Creation for Impact

A partnership between Clarity AI, the award-winning sustainability tech firm, and eFront, the largest alternative investment management platform to bring sustainability reporting capabilities to global private markets. In an age where climate risk is...

Articles July 27, 2022

Achieving Values Alignment in ESG and Impact Strategies

The ESG and Impact universe has proliferated in recent years. As asset owners increasingly commit to reaching net zero emissions and contributing to the UN Sustainable Development Goals, managers have raced to provide investment products that offer �...

Articles July 26, 2022 • Carlos Pérez, Carmen Boulet, Dominik Freidorfer

Data Transparency: Companies Can Understand ESG Scores and Easily Track and Benchmark ESG Metrics with Tech

Leveraging technology for corporate sustainability reporting and company ESG scores Companies are facing an increasing need to highlight and measure their environmental and social activities. Investors, lenders, and regulators are increasing pressure...

Articles July 14, 2022 • Clarity AI and ECOFACT AG

Changing tides? Moving from voluntary to mandatory climate disclosures

New TCFD aligned sustainability reporting standards emerging Starting in March of this year, we’ve had a few fruitful months of making progress in reporting on climate metrics. Starting out, the US Securities and Exchange Commission (SEC) publi...

Articles July 12, 2022 • Rodolphe Bocquet

Climate Investment: On Our Way to The Great Alignment?

Achieving environmental objectives will require coordination between official and market-based efforts Professor Roberto Rigobon at MIT often depicts the sustainable investment industry as one that “hits the target while missing the point”. What ...

Articles July 1, 2022 • Gerard Toledo

Deep dive into SFDR: View calculations at security-level, including equity, fixed income and funds

Portfolio reporting through Principal Adverse Impacts analysis Having access to a portfolio report by Principal Adverse Impacts (PAIs) and a company-level PAI analysis are very useful features to comply with the current SFDR reporting requirements. T...

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Articles June 24, 2022 • In Partnership with Additiv

Can Personalized Investment Enable Impact Investing?

How improved ESG reporting software makes values-aligned investment accessible It’s been over 20 years since the founder of Apple, Steve Jobs said “Get closer than ever to your customers. So close that you tell them what they need well before [&h...

Articles June 16, 2022 • Serhat Öngen

EU Sustainable Finance Regulation: What Are Product-Level Disclosures?

Breaking down EU Taxonomy and SFDR regulations The EU Taxonomy and the Sustainable Financial Disclosure Regulation (SFDR) are closely intertwined regulations. Together they affect various stakeholders in different ways. One of whom are Financial Mark...

Articles June 15, 2022 • Andrés Olivares, Henry (Chun-Yu) Lin

Ocean Acidification is Led by 3 Sectors

Environmental impact analysis: Identifying sectors causing most harm to our oceans The month of June contains World Ocean Day, and in recognition of that, Clarity AI analyzed the impact on our oceans that different sectors have, using a key metric [&...

Articles June 7, 2022 • Andrés Olivares, Henry (Chun-Yu) Lin

Boards of Directors Worldwide Are Still Heavily Skewed Towards Having a High Percentage of Male Members

Data from ESG reporting tool shows severe lack of gender diversity on corporate boards In the corporate world of publicly traded companies, Boards of Directors have traditionally had a much higher percentage of male members vs. female members. Ther...

Articles June 7, 2022 • Andrés Olivares, Henry (Chun-Yu) Lin

Direct Air Capture (DAC) Programs Are Only a (Small) Part of the Carbon Emissions Solution

Carbon capture technology will not fulfill US environmental objective Direct air capture (DAC) technologies extract CO2 directly from the atmosphere. The CO2 can be permanently stored in deep geological formations (thereby achieving negative emission...

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Articles June 7, 2022 • Andrés Olivares, Henry (Chun-Yu) Lin

Boards of Directors Worldwide Are Still Heavily Skewed Towards Having a High Percentage of Male Members

Articles April 29, 2022 • Andrés Olivares, Henry (Chun-Yu) Lin

Using ESG Scores to Evaluate Sustainability-related Political Promises

Clarity AI’s ESG Impact Score measures how a company’s operations affect our environment and society. A company’s score is calculated by aggregating its impact on the environmental, social and governance challenges that society faces, and compa...

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Articles April 29, 2022 • Andrés Olivares, Henry (Chun-Yu) Lin

Using ESG Scores to Evaluate Sustainability-related Political Promises

Articles April 22, 2022 • Jean-Charles Prabonneau

An Estimated 80% of Emissions Globally Are Classified as Scope 3

Research shows majority of companies do not currently include Scope 3 emissions in reduction targets, a future requirement for SFDR compliance Scope 3 emissions have proven much more difficult for companies to account for than Scopes 1 or 2, both [&h...

Articles April 14, 2022 • Patricia Pina, Jean-Charles Prabonneau, Jaime Oliver

Why Scope 3 Emissions Data Has Become Essential

As the shift towards low carbon development pathways becomes an even stronger imperative, Scope 3 emissions can no longer be ignored. Investors can look to technology for accurate data.

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Articles April 11, 2022 • Rodolphe Bocquet, Mikel Alvarez

Three Reasons Why MiFID II Opens A New Paradigm For Sustainable Investment

EU Regulation: The latest extension to the MiFID II directive explained An extension to MiFID II is one of the key components of the comprehensive European Commission’s sustainable finance regulatory agenda, alongside SFDR, EU Taxonomy and CSRD. Am...

Articles April 7, 2022 • Andres Olivares, Henry Lin, and Camila Mateo Volkart

Particulate Matter Emissions Is An Issue Companies of All Sizes Must Address

Small and mid cap companies have an important part to play in meeting EU Taxonomy objectives The World Health Organization (WHO) is using World Health Day to place an emphasis on clean air. Businesses have a crucial role to play […]

Articles April 4, 2022

EU Taxonomy: How to Solve for Sovereign Bonds

EU Taxonomy solution helps users meet regulatory technical standards The EU Taxonomy Regulation is an essential component of the European Commission’s action plan to reorient capital flows towards a more environmentally sustainable economy, and it ...

Articles March 17, 2022 • Patricia Pina, Rodolphe Bocquet, Carmen Boulet, Luis Angolotti, Javier Rodriguez

EU Taxonomy: Using Tech to Analyze “Green” Fund Performance

Overcoming EU Taxonomy reporting challenges with a data science approach In today’s sustainable investment markets, a growing cadre of emerging finance taxonomies aim to clarify what it means to be sustainable. As a common classification system for...

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Articles, Whitepapers March 17, 2022 • Patricia Pina, Rodolphe Bocquet, Carmen Boulet, Luis Angolotti, Javier Rodriguez

EU Taxonomy: Using Tech to Analyze “Green” Fund Performance

Articles February 7, 2022

How Can AI Fill In the Gaps for Full SFDR Compliance?

Research shows that SFDR PAIs coverage gaps are a main challenge of SFDR compliance The European Union’s Sustainable Finance Disclosure Regulation (SFDR) could revolutionize sustainability reporting—and, in turn, rescope the data that companies t...

Articles February 3, 2022

Sustainable Investing: How Data Science can Improve Reliability of Reported Data

Clarity AI standardizes ESG data to establish a reliable database prior to the implementation of CSRD reporting Sustainability performance data are still in their early days. The Corporate Sustainability Reporting Directive (CSRD) will eventually mak...

Articles January 25, 2022

Natural Language Processing (NLP) to Improve SFDR Reporting

SFDR Reporting Solution: Clarity AI’s controversy scoring system provides consistent incident assessment Most of the solutions available in the market for the analysis of companies’ behavior rely heavily on the manual assessment of news or on...

Articles January 8, 2022

How Machine Learning Can Expand Sustainability Data Coverage

Using estimation models to improve sustainability reporting Lack of data coverage is a major hurdle that can be overcome through the use of machine learning. Today, 80% of listed companies do not report required sustainability data. That means that, ...

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Articles, Whitepapers December 10, 2021

How Data Science Can Enable SFDR Reporting

Enabling SFDR reporting is an essential dimension of bringing societal impact to markets. This paper on SFDR presents three specific use cases that showcase the merits of enabling reporting via data science.

Articles November 26, 2021

Impact Investing: Measuring What Matters

Underscoring the need for a consistent approach to ESG impact reporting measurement The measurement of Impact investing currently has many dialects but no lingua franca. The Global Impact Investment Network (GIIN) defines impact investments as “inv...

Articles November 25, 2021

Impact Investing and Financial Sectors

Research on impact investing shows 41% of results can be explained by a company’s sector Clarity AI has a holistic approach to societal impact when aggregating all the different dimensions of impact for the UN Sustainable Development Goals (SDG...

Articles November 20, 2021

Using the UN SDG Framework to Measure Impact

As we outlined in our recent article, Impact Investing: Measuring What Matters, there is no singular universally recognized means of measuring impact. One approach that Clarity AI uses is to understand the impact that a company has on each of [&helli...

Articles November 19, 2021

EU Taxonomy: Leveraging Technology to Analyze Controversies

Using Natural Language Processing and machine learning to meet EU Taxonomy reporting requirements at scale After you have proven that your investment engages in activities that are included in the technical criteria of the EU Taxonomy regulation then...

Articles November 18, 2021

How to Satisfy EU Taxonomy Regulation Requirements with Limited Data

Clarity AI’s EU Taxonomy solution helps investors address sustainability data coverage gaps There is an obvious disconnect occurring in the market, between what investors need to report as it relates to the EU Taxonomy and what type of data is ...

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Articles, Whitepapers November 1, 2021

Quantifying Corporate Societal Impact Using United Nations’ Sustainable Development Goals

Access the second in a series of Clarity AI and Qontigo research papers focusing on how the SDGs framework can be used to produce estimates of companies’ impact.

Articles August 25, 2021

Impact Investing as a Tool to Address Climate Change and Wealth Inequality

ESG data emphasizes the urgency to incorporate impact analysis when investing Despite significant regulatory evolution and increase in financial flows as indicated by the growth in assets, many of the critical environmental and social challenges faci...

Articles August 24, 2021

Choose an Impact Framework that Bridges the Gap Between Theory and Practice

Measuring ESG impact using the World Benchmarking Alliance (WBA) and Clarity AI’s Frameworks Many investors choose to start their impact measurements by evaluating company level impact, but that often fails to measure the magnitude of the impac...

Articles August 23, 2021

Common Elements Among Impact Investing Frameworks

The three main components of ESG impact measurement There are three widely referenced frameworks (see table below) to derive a baseline of the impact components. The second column in the figure summarizes the frameworks’ descriptions of the key def...

Articles August 22, 2021

Impact Investing is Highly Appealing, But Are Investors Ready to Incorporate It into Their Portfolios?

Study shows most investors aren’t ready to incorporate ESG impact into their investment strategy As we discussed in our article, Highlighting Consistency Across Impact Investing Frameworks, we established that intentionality, additionality, and...

Articles August 21, 2021

Just How Big Is the Market for Impact Investing?

The Latest ESG Data: Chart shows growth in thematic ESG fund flows Although a widely accepted definition of impact investing has emerged from the Global Impact Investing Network (GIIN), there are still many measurement frameworks. In line with this d...

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Articles, Whitepapers August 1, 2021

On the Way to Impact Investment: Mind the Gap between Theory and Practice

Clarity AI collaborated with Qontigo to deep dive into the theory and practice of impact investment, define the gaps and propose the reconciliation methods between the two.

Articles October 25, 2018

What Banking and Phone Data Tell us about the Socioeconomic Groups and Their Consumption Patterns?

Clarity AI's published paper on "What Banking and Phone Data Tell us about the Socioeconomic Groups and Their Consumption Patterns?" demonstrates the feasibility and capabilities of Big Data sources to understand the consumption behaviour of the popu...

Articles August 1, 2018

The New Physics of Financial Services

Understanding how artificial intelligence is transforming the financial ecosystem: "Clarity AI quantitatively tracks the social responsibility of firms, which can be used by fund managers to optimize socially responsible portfolios."

Solutions

Needs

Datasets

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MiFID II and IDD Sustainability Preferences Checklist: An Essential Tool for Financial Product Distributors in the EU

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Usability Challenges in Reported EU Taxonomy Data from Financial Institutions

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Supreme Court Ruling Pours Further Cold Water on SEC Climate Disclosure Rules

The Missing GHG Emissions: How Satellite Data Can Quantify the Real Climate Risk of Oil & Gas Companies

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Why Data Granularity is Crucial for Investing in the UN SDGs

Webinar Series: AI Essentials for Sustainable Investing

Credible climate transition plans: Insights from an AI-driven analysis of corporate disclosures

Nearly half of the funds with environmental terms in their names may breach new EU regulations

Regulatory Update: FCA’s Guidance on SDR’s Anti-Greenwashing Rule

Your Last Minute Guide to Finalizing the SFDR Entity Level Reports

Easy SFDR Compliance: Generate Your Entity-Level Report in 2 Minutes

A New Era in ESG Oversight: Clarity AI and Next Gate Tech Integration for SFDR Reporting

Simplifying Article 29 LEC: A Practical Overview for Financial Institutions in France

Regulatory Update: Trend of Rules for Female Representation on Boards

The US SEC Climate Disclosure Rules: Stay Pending Review

Nasdaq Companies Subject to a “Comply or Explain” Basis with Board Diversity Rule

Webinar: Are the UN SDGs a Blueprint for True Sustainable Investing?

Net Zero Solutions: Using AI for Assessing Climate Transition Plans

The Impact of AI: Shaping Sustainable Consumer Choices

Webinar: The Future of Sustainability Data in an AI-driven Market

Key ESG Learnings and Best Practices in the Fashion Industry

What Does this Year’s SFDR Deadline Mean for Private Markets?

Regulatory Update: SEC and California Climate Rules

Non-Financial Disclosures: 50,000 Companies to Fall under CSRD by 2029

UK SDR Fund Labels Decoded: A Practical Guide for Asset Managers

Webinar: Building Sustainability Credentials — Can AI End Greenwashing?

How Effective Are Policies on Board Gender Diversity?

Aligning Revenues to the UN SDGs: How Can Investors Unlock Market Value and Reduce Reputational Risk?

Webinar: AI-Powered Sustainability: Seizing Investment Opportunities for 2024

Regulatory Update: Swiss Ordinance on Climate Disclosures

Beyond Good Intentions: The Role of SDG Misalignment Analysis

Webinar: Sustainability Reporting Standards — Convergence or Divergence?

Regulatory Update: 2024 sustainability Reporting: Alignment to the EU Taxonomy and Preparation for CSRD

Webinar: Navigating the 2024 ESG Regulatory Landscape across Global Markets

Unveiling the Trends: A Snapshot of Armament Manufacturing Investments in the Past Year

Regulatory Update: 2024 Outlook

Quick Take on the ESG Regulatory Landscape in 2024: Part 2 – US and APAC

Quick Take on the ESG Regulatory Landscape in 2024: Part 1 – Europe

ESG Product Round-up: 2023 Highlights to Advance Sustainable Finance

Regulatory Update: Amendments to the RTS of the SFDR

EU Taxonomy Reporting: Maximizing Coverage with High-Quality Supplementary Data

Regulatory Update: UK Sustainability Disclosure Requirements

Breaking the Perception of ESG Data Estimations

Granularity on SDG Alignment is Needed to Find an Edge in Sustainable Investment

Stronger together: Exploring the EU Taxonomy as a Tool for Transition Planning

3 Lessons Learned Using AI about the SFDR’s First Wave of Entity-Level PAI Reporting

Webinar: Power in Synergy: Exploring the EU Taxonomy as a Tool for Transition Planning

Navigating Net Zero: A Guide to the Financial Industry Frameworks

Webinar: Bridging the Gap: Integrating TNFD Recommendations into Decision-Making

Examining the TNFD: An Overview of Biodiversity and Nature

Singapore vs EU: Color-Coded Alignment Adds Complexity to the Interoperability of Global Sustainability Taxonomies

AI’s Role in Making ESG Data More Reliable

EU Taxonomy Reporting: Assessing Progress and Charting the Path Forward

Do Article 9 Funds Invest in More Companies Involved in Human Rights Controversies than Article 6 and Article 8 Funds?

National Oil Companies Lag Behind Peers in Environmental and Governance Indicators

1 in 5 companies have disparities between CDP GHG emissions reporting and their Sustainability Reports

Webinar: Leveraging a Multi-dimensional Approach to Decarbonize Portfolios and Achieve Net Zero Alignment

EU Taxonomy: Bridging the Gap Between Climate and Other Environmental Objectives

How to Assess Company Targets Efficiently with Net Zero Tools

ESG Scores vs ESG Ratings: How Are They Different?

Challenges and Solutions for the EU Taxonomy’s Minimum Safeguards Criteria

Only 1.5% of Global Investment Funds Are Aligned with a 1.5ºC Scenario and None Are Aligned when Scope 3 is Considered

Singapore vs EU: Similarities and Differences Between Taxonomies

Webinar: Optimizing UN SDG Alignment through Revenue Assessments