August 29, 2023
SimCorp integrates Clarity AI’s sustainability data to drive impact investing and regulatory alignment
This partnership allows financial market participants to incorporate ESG and impact considerations into their investment and compliance processes.
SimCorp announces the integration of Clarity AI’s data offering into its investment management platform. This partnership with Clarity AI, the global sustainability technology company, provides institutional investors with access to AI-powered datasets allowing them to effectively align with the EU sustainable finance regulations and execute on impact investing strategies.
The European Union is at the forefront of sustainable finance, with 20 percent of the region's fund assets classified as sustainable. Additionally, the EU accounts for 83 percent of global assets invested in sustainable funds, according to the 2022 Global Sustainable Fund Flows report.
Despite stringent regulations like the Sustainable Finance Disclosure Regulation (SFDR) and the EU Taxonomy designed to combat greenwashing and ensure greater transparency, challenges around data availability, reliability, and comparability persist. These challenges put institutional investors at risk of using inaccurate or outdated company evaluations, thereby exposing them to potential reputational and investment risks.
“Amid the rapid evolution and diversification of regulatory frameworks and increasing demand for access to high quality, accurate, timely sustainability data, Clarity AI stands out by delivering a flexible, and scalable solution. Our approach is comprehensive, providing the required data, methodologies, and tools to comply with all regulatory requirements,” said David Silver, Head of Solutions at Clarity AI.
We are thrilled to partner with SimCorp to expand the use of reliable, accurate data to meet regulatory requirements and drive more capital into sustainable finance without adding unnecessary complexity.
David Silver, Head of Solutions at Clarity AI
“With Clarity AI’s data seamlessly integrated into SimCorp’s investment management platform, 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,” said Carl Balslev Clausen, Director and Head of ESG Product Management at SimCorp.
Clarity AI’s award-winning solutions for SFDR and EU Taxonomy are based on methodologies built from the ground up, that leverage advanced technology to streamline data collection and processing and reduce errors associated with manual work.
“Through the use of AI-powered reliability checks, trained and supervised by a global team of data science and sustainability experts, we ensure our data is of the highest quality and consistent throughout all areas of sustainability, such as regulatory compliance or impact measurement,” said Silver.
The adoption of the United Nations Sustainable Development Goals (SDGs) framework has become a crucial tool to report on impact, develop engagement strategies, or create new revenue opportunities through thematic funds, for example.
This integration offers SimCorp clients effortless access to top-quality data, further enhancing their investment decisions.
Carl Balslev Clausen, SimCorp’s Head of ESG Product Management
A recent survey by BNP Paribas Asset Management found that more than 50 percent of investors are currently using or are planning to use thematic investing, and 70 percent of thematic investors plan to increase their focus over the next three years. In Europe, one of the main drivers of this trend is being able to market products as Article 8 or Article 9 under SFDR.
To meet this growing demand, SimCorp’s investment management platform offers its users Clarity AI's SDGs dataset with the ability to customize scores based on intended sustainability outcomes. Clarity AI analyzes more than 70,000 companies, 420,000 funds, 201 countries, and 199 local governments, which represents more breadth than any other player in the market.
"Institutional investors are increasingly prioritizing their ability to accurately measure and oversee the societal effects of their investments. Aligning with the SDGs has now become an established norm within the industry. Clarity AI's extensive SDG dataset brings a high level of completeness, and we are thrilled to seamlessly integrate it into our ESG and sustainable investment solutions. This integration offers SimCorp clients effortless access to top-quality data, further enhancing their investment decisions,” said Balslev Clausen.
About SimCorp
SimCorp offers industry-leading, integrated investment management solutions.
Our platform and ecosystem, comprising partners, services, and third-party connectivity empowers us to provide 40% of the world’s top 100 financial companies with the efficiency and flexibility needed to succeed.
With over 25 offices around the world, and more than 2,450 employees, we are a truly global, collaborative team that connects every continent and industry seamlessly.
Media Contact SimCorp:
Søren Rathlou Top, Global PR & Communications Manager at SimCorp
[email protected]
+ 45 31 15 87 06
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. Clarity AI’s capabilities are an essential tool for end-to-end sustainability analysis related to investing, corporate research, benchmarking, consumer e-commerce, and regulatory reporting.
As of June 2023, Clarity AI’s platform analyzes more than 70,000 companies, 420,000 funds, 201 countries, and 199 local governments, which represents more breadth than any other player in the market. One way Clarity AI delivers on its mission to bring societal impact to markets is by ensuring its capabilities are delivered directly into clients’ workflows through integrations with partners like SimCorp.
Additionally, Clarity AI’s sustainability insights reach more than 150 million consumers across more than 400,000 merchants. Clarity AI has offices in North America, Europe, and the Middle East, and its client network manages tens of trillions in assets and includes companies like Invesco, Nordea, BlackRock, Santander, Wellington, and BNP Paribas.