BlackRock taps ClarityAI for SFDR reporting

Sustainable investmentsSustainability tech vendor ClarityAI has announced that its sustainability data will be used by BlackRock in preparation for its reporting under the EU’s Sustainable Finance Disclosure Regulation (SFDR) framework.

The data will be used to complete the principal adverse impact statements that are required under level 2 of the SFDR and are set to be introduced in January 2023.

The SFDR has provoked ongoing debate from the funds industry since the introduction of level 1 requirements in March 2021. Some have argued that the regulation is in danger of becoming a labelling regime, while others have argued that the disclosures are too complex for investrors to understand.

There is, however, a broad consensus about the steep data management challenge involved. 

The Clarity AI service will be made available not just to BlackRock but to the users of its Aladdin portfolio management platform.

Stéphane Lapiquonne, managing director at BlackRock and head of sustainability for Europe, Middle East and Africa described the arrangement as an “exciting step forward for BlackRock” that will provide “the ability to offer Aladdin users enterprise level reporting to SFDR”.

© 2022 fundsTech