Fenergo, a provider of digital solutions for Know Your Customer (KYC) and Client Lifecycle Management (CLM), has launched a new solution to help financial institutions reduce regulatory and reputational risk as well as streamline operations for environment, social and governance (ESG) compliance.
The solution allows firms to automatically calculate climate, reputational and complementary ESG risks and fulfil regulatory obligations including Sustainable Finance Disclosure Regulation (SFDR) and the Corporate Sustainability Reporting Directive (CSRD), which aims to bring sustainability reporting on a par with financial reporting.
Also covered are he EU Taxonomy and the Task Force on Climate Related Financial Disclosures (TCFD), which encourage firms to track the reporting impact an organisation has on global climate change,
Financial institutions can build client ESG profiles by leveraging information from external ESG data providers before validating it against existing KYC documentation and controversy screening.
In addition, they can rationalise data capture for their clients and visualise supply chain hierarchies before applying accurate ESG ratings.
The company says it will give financial institutions the ability to classify and prove the ESG performance of the client book, which in turn can unlock access to green funding, reduce capital requirements and benefit from an enhanced reputation.
“The synergies that exist between KYC and ESG operating models and the overlap on data collection make CLM a natural home for ESG.” said Stella Clarke, chief strategy officer, Fenergo.
She added,” Financial institutions can leverage existing processes, people and data for ESG, creating a single client view and driving real, tangible efficiencies. This also provides financial institutions with the advantage of being able to quickly operationalise ESG compliance processes and meet regulatory obligations, thus protecting reputation and attracting ESG-conscious clients and talent.”
The ESG software as a service (SaaS) is available as a standalone or part of Fenergo’s end-to-end CLM platform.
