ESG Risk Intelligence for Financial Institutions

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AI-Based Risk Identification

Portfolio Due Diligence

Compliance & Reporting

Responsible Investment Analysis

Global Coverage

Risk Analysis Metrics

Customisable Features

Real-Time Alerts

Integration Capabilities

Company Screening

Incident Severity Scores

Sustainability Performance

Double Materiality Assessments

AI-Based Risk Identification

Portfolio Due Diligence

Compliance & Reporting

Responsible Investment Analysis

Global Coverage

Risk Analysis Metrics

Customisable Features

Real-Time Alerts

Integration Capabilities

Company Screening

Incident Severity Scores

Sustainability Performance

Double Materiality Assessments

AI-Based Risk Identification

Portfolio Due Diligence

Compliance & Reporting

Responsible Investment Analysis

Global Coverage

Risk Analysis Metrics

Customisable Features

Real-Time Alerts

Integration Capabilities

Company Screening

Incident Severity Scores

Sustainability Performance

Double Materiality Assessments

Investment Managers

Proactive Risk Detection

Identify potential ESG controversies in real-time, from over 150k sources across 100 languages, allowing timely risk management and avoidance of financial losses or reputational damage.

Improved Due Diligence

Gain deeper insights into ESG practices of companies and those of their extensive supply chains, enabling more informed investment decisions aligned with ESG goals and regulations.

Enhanced Portfolio Optimization

Spend less time sifting through irrelevant information and focus on the ESG issues with the highest potential impact on your portfolio. Prioritize incidents using ESG-Sentinels customisable risk scoring model.

Regulatory Compliance

Detect and assess incidents related to regulatory breaches (e.g., SFDR, EU Taxonomy), to flag potential non-compliance by portfolio companies and proactively manage these risks.

Asset Managers

Client Alignment

Cater to the growing demand from clients for ESG-conscious investing by actively identifying and mitigating ESG risks, positioning your organisation as a leader in the sustainable management of assets.

Optimized Portfolio Resilience

Enhance your portfolio’s long-term sustainability by harnessing Generative AI to proactively detect and analyse emerging ESG risks that can impact asset values.

Active Engagement

Promote positive change and enhance long-term portfolio value by engaging portfolio companies on ESG issues in their own operations and within their supply chains.

Regulatory Compliance

Effectively track and report on client portfolios’ ESG performance by proactively detecting incidents related to potential non-compliance, including considerations of double materiality.

Insurance Providers

More Accurate Risk Assessments

Assess ESG risks associated with insured entities and their supply chains with real-time ESG incident detection and analysis, enabling timely adjustments in risk premiums and underwriting decisions.

Reduced Claims Risk

Proactively identify ESG issues to help prevent future environmental damage, labor disputes, or governance incidents that could lead to costly claims.

Enhanced Reputation

Strengthen your brand reputation by demonstrating a commitment to ESG risk management. This builds trust with policyholders, investors, and regulators who are increasingly focused on ESG considerations.

Focused Insights for Effective Action

Link detected ESG incidents to specific entities within your insurance portfolio, allowing for mitigation strategies targeted at high-risk policyholders.

Banks

Stronger Loan Portfolio Management

Harness Generative AI to identify potential ESG risks associated with borrowers before issuing loans, improving client selection and mitigating the risk of defaults or losses.

Data-Driven Decision-Making

Access real-time ESG data for risk assessments, scenario planning and client benchmarking to make informed lending decisions and improve overall risk management.

Enhanced Stress Testing

Become better prepared to weather future challenges by integrating potential ESG risks like climate change, regulatory changes, and social unrest into your stress testing framework.

Regulatory Compliance

Stay ahead of evolving regulations by proactively monitoring potential ESG issues within lending portfolios, protecting your organisation’s reputation and attracting socially conscious clients.

ESG-Sentinel Empowers Proactive Compliance with
Supply Chain Due Diligence Regulations

Enhanced portfolio transparency

Incident classification in line with regulations

Investee company supply chain risk scores

Real-time, AI-powered risk analysis & insights

Graph analytics and advanced algorithms

Strategic engagement with investee companies

Strengthened reputation management

Customizable reporting and monitoring

The Evolving Regulatory Landscape
for Financial Institutions

EU Sustainable Finance Disclosure Regulation (SFDR)

EU Taxonomy Regulation

EU Sustainable Finance Disclosure Regulation (SFDR)

The SFDR mandates the disclosure of ESG factors, including potential supply chain impacts, in investment decisions and products using  Principle Adverse Impact indicators (PAIs):

GHG emissions (Scope 1, 2, 3 & total)
Carbon footprint
GHG intensity
Fossil fuel sector
Non-renewable energy consumption & production
Energy consumption intensity per high impact climate sector
Biodiversity negative impact
Emissions to water
Hazardous waste ratio
UNGC principles and OECD guideline violations
UNGC principles and OECD guideline monitoring
Gender pay gap
Board gender diversity
Controversial weapons exposure

EU Taxonomy Regulation

Financial institutions offering sustainability-focused products within the EU must disclose what portion of their investments aligns with the Taxonomy's environmental objectives: