AxiomSL Launches Environmental, Social and Governance (ESG) solution

Wednesday 30 June 2021 13:14 CET | News

UK-based AxiomSL has launched a new Environmental, Social and Governance (ESG) solution to automate compliance with new sustainability and social impact reporting.

The company has in focus developments by the European Banking Authority (EBA), the European Securities and Markets Authority (ESMA) and other regulatory bodies. The new solution standardises the process of integrating ESG data attributes, such as counterparty exposures, climate risk reference data and social impact data, with existing financial reference data in a common data dictionary to streamline ESG reporting for financial institutions.

The EBA has led the way on ESG reporting requirements for financial institutions with its proposed draft technical standards, which provide a framework for disclosing how climate change may exacerbate other risks within institutions’ balance sheets, how institutions are mitigating those risks, and their green asset ratio on exposures financing taxonomy-aligned activities, such as those consistent with the Paris agreement goals.

These disclosure requirements are expected to be applicable starting in June 2022. ESMA has also begun to develop a taxonomy for financial institution ESG reporting. To meet these requirements, financial institutions will need to be able to disclose their climate-related exposures consistently and accurately in addition to traditional financial risk data.

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Keywords: EBA, compliance, ESG, risk management
Categories: Fraud & Financial Crime
Countries: United Kingdom
This article is part of category

Fraud & Financial Crime

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