Sustainability technology platform Clarity AI has announced the launch of a new methodology to help index and ETF providers build and market products aligned with the EU’s Sustainable Finance Disclosure Regulation (SFDR).
The SFDR is part of the EU’s Action Plan on financing sustainable growth. It requires financial institutions to disclose information on how they integrate sustainability risks and factors into their investment decisions, and how they promote sustainability in their investment products.
Clarity AI’s new Sustainable Index and ETF methodology is designed to enable index and ETF providers to create and market products that are considered in line with the EU’s sustainable investment definition. This will allow financial market participants to understand how companies qualify under the sustainable investment assessment.
The process incorporates a variety of criteria, ensuring that investments are not just compliant with regulations, but are also genuinely fostering sustainable growth. Clarity AI claims that this approach will help those in the financial sector in determining whether or not firms adhere to sustainability investment criteria.
Ani Widham, Senior Product Manager at Clarity AI, said, “We know that investors seek clarity and transparency when evaluating their portfolios, so providing them with this efficient methodology, aligned with the SFDR regulation, will enable them to make better sustainable investment decisions to benefit their companies and the wider sustainable investment industry.”
About Clarity AI
Clarity AI, founded in 2017, provides a cloud-based sustainability technology platform that helps businesses and organisations assess, analyse, and report on their ESG performance. Clarity AI also uses machine learning and big data to deliver environmental and social insights to investors, organisations, consumers, and governments. As of September 2023, Clarity AI’s platform analyses 70,000 companies, 430,000 funds, 201 countries, and 199 local governments.
Clarity AI was recently named to Fast Company’s prestigious annual list of “Brands That Matter” in 2023.
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