Fenergo Introduces ESG Solution to Support Mandatory Regulatory Requirements

Fenergo, the leading provider of digital solutions for Know Your Customer (KYC) and Client Lifecycle Management (CLM), has launched a new solution to enable financial institutions to reduce regulatory and reputational risk and streamline operations for ESG compliance.

This allows firms to automatically calculate climate, reputational and complementary ESG risks and efficiently fulfil regulatory obligations including Sustainable Finance Disclosure Regulation (SFDR) and the Corporate Sustainability Reporting Directive (CSRD).

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The solution helps financial institutions to streamline compliance processes for regulatory requirements such as the SFDR which mandates firms to make a series of disclosures around the sustainability of the assets they are managing, and the CSRD, which aims to bring sustainability reporting on a par with financial reporting. Reporting standards and disclosures such as the 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, are also covered by the solution.

Commenting on the launch, Stella Clarke, Chief Strategy Officer, Fenergo, said:"The synergies that exist between KYC and ESG operating models and the overlap on data collection make CLM a natural home for ESG. 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."

Edel Brophy, Director of ESG and Regulatory Compliance, Fenergo, said: "With ESG regulations now mandatory in the European Union and with other regions following suit, a net zero policy is almost obsolete if you do not have full transparency and can't adequately prove it to the regulators. As the regulatory landscape continues to evolve, our ESG solution enables financial institutions to access standardised information on their clients quickly and efficiently and determine ESG risk in line with mandatory disclosure and reporting requirements."