Clarity AI has introduced a new sustainability monitoring tool to help fund managers track compliance across multiple ESG frameworks as regulatory scrutiny on greenwashing increases.
The platform consolidates data from different sustainability labels, including the UK Financial Conduct Authority’s (FCA) Sustainability Disclosure Requirements (SDR) and industry-led certifications such as France’s SRI label and Germany’s FNG. It also supports compliance with ESMA’s Paris-Aligned Benchmark (PAB) and Climate Transition Benchmark (CTB) exclusions.
Recent European Securities and Markets Authority (ESMA) guidelines require funds using ESG-related terms to allocate at least 80% of assets to sustainable investments.
“Sustainability regulations and labels are proliferating, making it increasingly challenging for fund managers to keep up,” said Tom Willman, Regulatory Lead at Clarity AI.
The tool aims to streamline regulatory reporting, reducing the burden on fund managers while ensuring alignment with emerging sustainability standards. The system currently supports the German FNG and UK SDR labels and will soon incorporate the French SRI label and Belgian Towards Sustainability label.
With evolving ESG regulations, technology-driven solutions are becoming essential for ensuring transparency and compliance in sustainable finance.
