Clarity AI and Refinitiv launch SFDR reporting tool

By ESG Clarity

SFDR Reporting Professional pulls data from more than 50,000 companies

Sustainable data company Clarity AI has teamed up with London Stock Exchange Group (LSEG) business Refinitiv to develop a tool for reporting in line with the Sustainable Finance Disclosure Regulation (SFDR).

The EU regulation requires financial institutions to disclose the principal adverse impacts their investments have on social and environmental issues and also applies to those who market sustainable investment products to make additional product-level disclosures.

SFDR Reporting Professional pulls data from more than 50,000 companies via an application programming interface and then aggregates this at a portfolio and individual security level. More than 20 indicators will be mapped, including 16 mandatory indicators. The tool can also provide template PDF reports that can be used for reporting.

“SFDR is placing additional reporting requirements on those marketing sustainable investment products and many are requiring comprehensive reporting tools to help them comply,” said Cornelia Andersson, group leader, sustainable finance and investment at LSEG.

Clarity AI CEO Rebeca Minguela added: “Accuracy will be key – especially in the environment of high regulatory scrutiny surrounding ESG and sustainability.”

In July, MSCI also launched a toolkit to help investors report in line with SFDR. It includes issuer-level data, regulatory reporting and portfolio analytics solutions, multi-asset class coverage, index-level metrics, and ESG fund-level metrics.