10 %
Application Programmer Interfaces ( APIs )
• It is crucial to ensure ESG and KYC / financial crime are not siloed . Leverage people , data and resources to create integrated reporting structures that centralise the entity in the process , whether we ’ re looking at them from an ESG or KYC lens
• Use proprietary rating methodologies to
A Fenergo poll of global FIs highlights that just 10 % of executives would consider their firm to be fully prepared to meet ESG obligations
automatically rate and classify the client , escalating to specialist “ ESG- Regulatory Officer ” type roles for exceptional cases
• The automation and repurposing of data , coupled with the leveraging of CLM operating models , deliver significant operational efficiencies and cost savings
Q . WHY IS IT IMPORTANT FOR FIS TO AUTOMATICALLY CALCULATE CLIMATE AND REPUTATIONAL ESG RISKS AND THEIR SUPPLY CHAINS ?
» Automation brings the ability to respond to changing policy quickly , avoids breaching regulations and streamlines the whole compliance processes , while minimising the need for human intervention . Technology allows FIs to streamline data capture for their clients and visualise supply chain hierarchies before applying ESG ratings .
By adopting automated risk assessment mechanisms , FIs can swiftly identify and analyse potential ESG vulnerabilities across their supply chains . This proactive approach enables effective risk mitigation , ensuring longterm sustainability and resilience . Additionally , automating these calculations enhances transparency , boosts stakeholder confidence and helps institutions navigate the evolving ESG landscape , thereby maintaining their competitive edge and contributing to a more sustainable future .
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