SimCorp has integrated Clarity AI's sustainability data into its investment management platform to help drive impact investments.
The asset manager's partnership with tech provider Clarity AI provides institutional investors access to AI-powered datasets, allowing them to align with the EU Sustainable Finance Disclosure Regulation (SFDR) and execute impact investing strategies.
As the demand for thematic investing continues to rise, SimCorp's investment platform equips its users with Clarity AI's SDGs dataset, offering flexibility to customise scores based on desired sustainability outcomes, said SimCorp.
Although regulations such as SFDR and EU taxonomy aim to counter greenwashing and enhance transparency, data challenges remain, cited SimCorp.
David Silver, head of solutions at Clarity AI, highlighted that their data ensures consistency across sustainability areas like regulatory compliance and impact measurement. This is achieved by employing "AI-powered reliability checks" overseen by a specialist team.
Calling alignment with the United Nations Sustainable Development Goals (SDGs) a "norm within the industry" now, Carl Balslev Clausen, director and head of ESG product management at SimCorp, added: "Sustainability analysis becomes an integral part of the complete end-to-end investment process. Our mutual clients benefit from advanced process automation, rigorous control checks of their sustainability-related policies, and effortless access to ESG analytics."
Silver said that adopting the SDG framework has become a crucial tool for reporting impact, developing engagement strategies or creating revenue opportunities through thematic funds.
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