100%
Compliance achieved
70%
reduction in reporting times
3X
faster decision making capabilities
Background
A leading global asset manager faced increasing pressure to comply with the EU's Sustainable Finance Disclosure Regulation (SFDR) and EU Taxonomy requirements. As regulatory standards for sustainable investing continued to evolve, the organisation needed to transform its approach to ESG data management and reporting to ensure compliance while maintaining its competitive position in the sustainable investment landscape.
Challenge
The asset manager encountered several significant obstacles in implementing the complex SFDR and EU Taxonomy frameworks: • Navigating the intricate regulatory landscape with multiple disclosure obligations • Addressing gaps in existing ESG data collection and management processes • Creating standardised sustainability scoring mechanisms across diverse investment products • Ensuring consistent and accurate reporting for regulatory compliance • Providing transparent ESG metrics to various stakeholders, including portfolio managers and product teams
Approach
Keyrus implemented a comprehensive, systematic methodology to address the regulatory requirements: Regulatory Landscape Assessment • Conducted thorough review of EU Taxonomy and SFDR frameworks • Analysed key criteria for sustainable economic activities and disclosure obligations • Identified specific requirements for classification of financial products Domain Mapping and Impact Analysis • Mapped regulatory requirements to relevant business domains (ESG reporting, investment management, risk assessment) • Performed gap analysis to identify shortcomings in current practices • Evaluated existing data management processes against regulatory needs Data Collection and Validation • Identified critical data sources required for SFDR and EU Taxonomy compliance • Implemented processes for collecting, validating, and standardising ESG data • Established quality and accuracy standards for regulatory reporting Implementation of Reporting Mechanisms • Designed automated reporting solutions tailored to regulatory requirements • Developed a standardised Sustainability Investment (SI) scoring mechanism • Created unified reporting framework for the entire organisation
Key results
Benefits
For Portfolio Managers • Informed Investment Decisions: Access to high-quality ESG data enabling investment strategies aligned with sustainability goals and regulatory requirements • Optimised Portfolio Composition: Clear visibility into sustainability performance metrics to improve overall ESG alignment For Risk and Compliance Teams • Enhanced Risk Monitoring: Continuous tracking of sustainability risks, enabling proactive identification and mitigation of potential ESG-related issues • Improved Risk Reporting: Generation of consistent, accurate reports on sustainability risks for both internal and external stakeholders For Internal Product Teams • Accelerated Product Development: Rich insights into sustainability performance, driving faster development of ESG-focused financial products • Enhanced Product Transparency: Automated SI scores contribute to clearer, more transparent sustainability disclosures, building client trust
What our clients say
Keyrus provided the expertise and structured approach we needed to navigate the complexities of SFDR and EU Taxonomy compliance, streamline our reporting processes and reduce manual effort.
Anonymous, Senior ESG Compliance Lead, Global Asset Manager
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