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Clarity AI and LSEG Announce Partnership to Provide New SFDR Reporting Tool for Investors

Clarity AI, the leading global sustainability tech platform, announced today that it has partnered with Refinitiv, a London Stock Exchange Group (LSEG) business, to develop SFDR Reporting Professional.

The SFDR is a key component of the EU’s Sustainable Finance Action Plan, which aims to encourage capital to flow towards companies and activities that support the EU’s environmental and social objectives. It 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. Refinitiv Lipper data1 below shows the number of Article 8 and Article 9 funds and associated AUM, indicating the volume of firms subject to the SFDR reporting obligations:

− Article 8: Euro 5,219,972m (10,300 primaries)

− Article 9: Euro 478,424m (1,221 primaries)

“We are excited to partner with the team at LSEG to bring our market-leading SFDR data coverage and reporting capabilities to an even broader base of clients,” said Rebeca Minguela, Founder and CEO of Clarity AI. “LSEG serves thousands of asset managers who will have to report on SFDR, and accuracy will be key – especially in the environment of high regulatory scrutiny surrounding ESG and sustainability.”

The SFDR Reporting Professional will feature combined capabilities leveraging market-leading data coverage of over 50,000 companies. It is complemented by LSEG’s comprehensive range of reported data on ESG, fundamentals, funds and sovereigns.

Data will be accessed via API and the fully integrated tool will include the ability to aggregate at the portfolio level or to view at the individual security level. There will be a total of over 20 indicators mapped, including 16 mandatory indicators. Additionally, templated PDF reports will be available and can be accessed to ensure ease of reporting to the regulators.

“SFDR is placing additional reporting requirements on those marketing sustainable investment products and many are requiring comprehensive reporting tools to help them comply. As a provider of some of the most comprehensive sustainability data and indexes available, we are committed to developing leading edge capabilities working with leading specialist sustainability players,” said Cornelia Andersson, Group Leader, Sustainable Finance and Investment at LSEG. “Partnering with Clarity AI ensures our clients will have the best possible information and capabilities available to them for SFDR reporting, and we’re already exploring future opportunities for collaboration with Clarity AI.”

1 Date correct as of 15th December 2022

About Clarity AI

Clarity AI is a sustainability technology platform that uses machine learning and big data to deliver environmental and social insights to investors, organizations, and consumers. As of November 2022, Clarity AI’s platform analyzes more than 50,000 companies, 320,000 funds, 198 countries and 188 local governments – two to thirteen times more than any other player in the market – and delivers data and analytics for investing, consumer research, corporate research and reporting for sustainability regulations worldwide. Clarity AI has offices in North America, Europe and the Middle East, and its investor client network manages tens of trillions in assets under management, while its consumer partnerships allow it to be part of millions of daily ecommerce transactions and to reach hundreds of millions of consumers at over 400,000 merchants. clarity.ai

About Refinitiv, an LSEG business

Refinitiv, an LSEG (London Stock Exchange Group) business, is one of the world’s largest providers of financial markets data and infrastructure. With over 40,000 customers and 400,000 end users across 190 countries, Refinitiv is powering participants across the global financial marketplace. We provide information, insights, and technology that enable customers to execute critical investing, trading, and risk decisions with confidence. By combining a unique open platform with best-in-class data and expertise, we connect people to choice and opportunity – driving performance, innovation, and growth for our customers and partners. For more information, visit https://www.refinitiv.com/en.

About LSEG

LSEG (London Stock Exchange Group) is a leading provider of financial markets infrastructure and a global supplier of data and analytics, news, and index products.

We help businesses and economies fund innovation, manage their risk, and create jobs by supporting customers at every point in the trade lifecycle - from making pre-trade decisions and executing those trades to raising capital and settlement.

With 23,000 people in 70 countries, we draw on 300 years of knowledge and experience to help drive financial stability, empower economies and enable sustainable growth.

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