Etiqueta: T2

LINK:https://www.esgtoday.com/clarity-ai-launches-methodology-to-build-sfdr-aligned-indexes-and-etfs/

Date: 05th of October 2023

Media: ESGtoday

What happened?

Clarity AI, a sustainability technology platform, recently launched a methodology to aid index and ETF providers in creating and promoting products compliant with the European Union’s Sustainable Finance Disclosure Regulation (SFDR). Clarity AI employs machine learning and big data to offer environmental and social insights, analyzing a vast dataset encompassing companies, funds, countries, and local governments. Their Sustainable Index and ETF methodology help providers align with the EU’s Sustainable Investment definition, allowing assessment against sustainability criteria and regulatory thresholds related to UN Sustainable Development Goals, EU Taxonomy, and SFDR Principle Adverse Impact indicators.

Whom and where it affects?

Clarity AI’s Sustainable Index and ETF methodology affects:

• Index and ETF Providers
• Exchange-Traded Funds
• Financial Market Participants
• Companies and Organizations
• Regulatory Bodies
• Consumers and General Public

What sort of public or private institutions are involved?

The EU and UN are involved and in addition, Clarity AI uses machine learning and big data to deliver environmental and social insights to investors, organizations, consumers, and governments. As of September 2023, the Clarity AI platform analyzes 70,000 companies, 430,000 funds, 201 countries and 199 local governments.

Why is it important for Banking and Finance?

The Clarity AI platform and methodology are crucial tools for the banking and finance sector because they enable institutions to comply with regulations, meet investor demands, manage risks, gain a competitive edge, and align with global sustainability trends. These factors are critical in the ever-changing landscape of responsible management.

What do you think will be the consequences in the foreseeable future?

The consequences of the Clarity AI platform and methodology in the future are uncertain but can be expected to include:

• Enhanced compliance with sustainability regulations, reducing regulatory risks.
• Increased attraction of investors seeking sustainable investment options.
• Improved risk management by considering environmental, social, and governance (ESG) factors.
• Potential competitive advantages for institutions offering sustainable financial products.
• Opportunities for global expansion as sustainability becomes more widespread.
• Encouragement of innovation in financial products and services.
• Positive environmental and social impacts, such as reduced carbon emissions and improved social equality.

These outcomes depend on factors like regulatory changes, investor preferences, and institutions’ commitment to sustainability principles.

Keywords

Clarity AI, Sustainable Finance Disclosure Regulation (SFDR), Sustainable Development Goals (SDGs), Exchange Traded Funds (ETF), Big Data, Innovation.

Date: THU OCT 20, 2022

Media: REUTERS

What happened?

The increase of gas prices has had the consequence that its more attractive to invest on green or clean hydrogen.

Whom and where it affects?

This incident affects specially almost 25 of European countries that has been affected directly by the Ukrainian War and therefore, nowadays, these countries are investing around $73 billions of public and private funds to the production of green hydrogen.

What sort of public or private institutions are involved?

In this case, the public institutions that are involved are the USA and European Governments.

Why is it important for Banking and Finance?

From the point of view of the Banking and Finance sector it is important because that fact could cause a standstill of the invested on fossil hydrogen and it may ends on a huge lost for the companies that produce this energy.

That could become on a new creation of financial assets of green or clean hydrogen for invested on, replacing to the fossil assets.

What do you think will be the consequences in the foreseeable future?

First, we think that the Banking sector and companies will invest billions of dollars on green assets, replacing assets like oil or gas and that fact will support ecology.

This will do improve an economic growth of the green sector and countries who worked out well on this cause. And for consequence, these countries will not depend only of huge exporting fossil assets and gas countries, like Russia, for example.

Keywords: Green energy, Gas, Oil, Fossil Hydrogen

SDG:

The SDG that are related with this new are:

7. Affordable and clean energy.

11. Sustainable cities and communities.

12. Responsible consumption and production.

13. Climate action.

Link: https://californianewstimes.com/brussels-warned-not-to-delay-tighter-capital-rules-for-eu-banks/569122/

Date: 24^th of October 2021

Media: California News Times

What happened?

The European Commission proposed to postpone for two years the banking rules which were supposed to enter into force by 2023. This fact gave birth to the reaction of the Secretary-General of the Basel Committee on Banking Supervision (BCBS), Carolyn Rogers, who underlined the importance of the application of these rules on time.

Whom and where it affects?

The measures taken will set new standards for how international banks measure capital to create cross-border consistency. So, the postponement of these rules would affect European Banks (“Banks in countries such as France were hit hardest by having to hold more capital to comply with the latest rules, but delays are welcome due to the risk of conflict with global regulators”); and EU delays can also frustrate European regulators. Besides, another worldwide banks could be affected in terms of fair competition. Therefore, this possible delay in applying the rules could have a global banking repercussion.

What sort of public or private institutions are involved?

There are different institutions involved in the related new:

On the one hand, The Basel III reforms are the Basel Committee on Banking Supervision’s key response to the global financial crisis (2008). This institution is the primary global standard setter for the prudential regulation of banks and provides a forum for regular cooperation on banking supervisory matters.

On the other hand, the European Commission helps to shape the EU´s overall strategy, and, in this case, is proposing to give European banks a two-year extension of the internationally agreed deadline for implementing some new banking rules.

Moreover, the European Banking Authority (EBA) is the EU agency tasked with implementing a standard set of rules to regulate and supervise banking across all EU countries; and the European Central Bank’s supervisory committee also supervise this process of banking reforms.

Finally, different International Banks around the world will be affected for the implementation of these standards and the possible postponement decision taken by the European Commission.

Why is it important for Banking and Finance?

It’s important for Banking and Finance because it could delay the process of setting new standards for how international banks measure capital to create cross-border consistency and, as a consequence, also its long-term benefits of strengthening the resilience of the financial system.

What do you think will be the consequences in the foreseeable future?

The European Banking Authority (EBA) has published a Report on the impact of implementing the final Basel III reforms in the EU. The full Basel III implementation, in 2028, would result in an average increase of 15.4% on the current Tier 1 minimum required capital of EU banks. Taking this into account, EU delays can trigger some conflicts between the different institutions involved, because it is important that good Basel III standards be fully, timely and faithfully; in order to achieve a resilient banking system that supports the real economy.

Keywords: European Commission, Basel Committee on Banking Supervision, European Banking Authority, Basel III standars, financial system.