SFDR Anti-Greenwashing Solution
Problem
Demanding regulations lacking clear guidelines
The client operates in a highly regulated capital markets environment. At the same time, the company is exposed to the green policies megatrend and the rising importance of environmentally sustainable investing.
Innovation and proactivity expected
Regulations issued by the European Commission have described requirements that called for technological innovations within asset managers in order to comply with the regulations. However, no clear guidance has been given in terms of means or methods for achieving the required end results.
Solution
- Natural Language Processing
- Intelligent Automation
- Advanced Data Collection Robots
Expanding existing BotX ESG solutions
We have enhanced our ESG-focused Media Monitoring Solution to achieve the required result to cover not only companies but entire investment funds.
Automated intelligent outreach to fund managers
We have built a system that automatically finds, downloads, and analyzes fund annual reports. It categorizes the funds into SFDR classifications based on information included in the reports and performs a set of steps in case the report fails to address the SFDR classification issue. One of those steps is automatic direct outreach to individuals who are responsible for fund management and requesting a standardized set of reports that address
Outcome
- Outcome: Reduced compliance risk
- Data: Public, Basic Internal
- Development time: Medium (1 month)
Reduced risk of penalties and involvement in greenwashing scandals
The client has extremely cost-efficiently acquired a solution that allows them to challenge the SFDR classification of funds. At the same time, the client can with ease demonstrate to the regulator an intense effort to prevent greenwashing. That way the client reduces compliance risk and can fend off potential greenwashing accusations with greater ease.
