Clarity AI Launches Tool to Help Fund Managers Navigate Europe’s Sustainable Investment Rules

Listen to this story:

• Clarity AI launches a solution to simplify regulatory and labelling complexities for sustainable funds in Europe.
• The platform integrates multiple ESG frameworks into a single interface, reducing time spent on compliance.
• Supports fund managers with UK SDR, German FNG, and upcoming French SRI and Belgian labels.

Sustainable investment fund regulations are evolving rapidly, with increasing scrutiny on greenwashing and new labelling standards. Fund managers must comply with regulatory-driven requirements like the UK FCA’s Sustainability Disclosure Requirements (SDR) and government-led labels such as France’s SRI and Germany’s FNG.

The Solution:

Clarity AI’s latest platform streamlines ESG compliance by consolidating regulatory data and screening tools into one user-friendly dashboard.

“The goal is to reduce the amount of time fund managers spend on identifying potential investments that fall short of the standards and understanding the cause for non-compliance, in order to decide on the best course of action,“ said Henry Waind, Product Lead at Clarity AI.

Why It Matters:

New guidelines from the European Securities and Markets Authority (ESMA) require ESG funds to maintain at least 80% sustainable investments. Fund managers need adaptable tools to meet these evolving requirements efficiently.

Related Article: Clarity AI: Only 4% of “Sustainable” Investment Funds Would Automatically Comply with Requirements of US, UK and EU Regulatory Investment Fund Label and Naming Rules

“Sustainability regulations and labels are proliferating, making it increasingly challenging for fund managers to keep up,“ said Tom Willman, Regulatory Lead at Clarity AI. “A significant amount of resources is tied up in regulatory obligations. These could be better used to develop sustainable solutions that support end-investors’ sustainability goals, and technology is key to making this process more efficient.“

Looking Ahead:

Clarity AI’s tool currently supports UK SDR and German FNG labels and will soon incorporate additional frameworks like the French SRI and Belgian Towards Sustainability labels. The platform also screens for Paris-Aligned Benchmark (PAB) and Climate Transition Benchmark (CTB) exclusions under ESMA’s Naming Rules.

Follow ESG News on LinkedIn