Fenergo, the provider of digital solutions for know-your-customer (KYC) requirements and client lifecycle management (CLM), has launched a solution to enable financial institutions to reduce regulatory risk and streamline operations for environmental, social and governance (ESG) compliance.

The solution, the company notes, allows financial institutions to automatically calculate climate, reputational and complementary ESG risks and efficiently fulfil regulatory obligations, including the EU’s Sustainable Finance Disclosure Regulation and the Corporate Sustainability Reporting Directive.

Firms can build client ESG profiles by leveraging information from external ESG data providers before validating it against existing KYC documentation and controversy screening. With the ability to classify and prove the ESG performance of the client book, financial institutions can unlock access, the company says, to green funding, reduce capital requirements and benefit from an enhanced reputation. 

The ESG software-as-a-service solution is available as a standalone or as part of the company’s end-to-end CLM platform.