Why is ESG Taxonomy important to measure risk?

There is a new trend to obtain climate data promoted by the change of mentality of the investor and society towards investments where sustainability criteria are taken into account.

On the other hand, regulatory changes at the European level will make the European taxonomy of sustainable finance acquire certain relevance, which classifies economic activities and projects according to how they contribute to the environmental objectives of the European Union. That is why in 2022, financial institutions could have bonuses or penalties in the cost of capital depending on whether they support investments that comply with the taxonomy, affecting both large, listed companies and SMEs. The Environmental criteria are joined by the Social and Governance (ESG)

Our solution.

A4C-Risk has a double application, on the one hand the generation of rating and on the other, the evaluation of projects.

Rating generation: we offer a platform aimed at banks so that they can evaluate the risk stock of investments, obtaining an automatic rating through different data sources and inspired by the European taxonomy. With supplier data and with the indications of the European Commission we can indicate, apart from the score, if it complies with the regulatory requirements based on its activity. These scores can be modified taking into account new data or simulating future scenarios, thanks to the agnostic capacity of the tool.

Evaluation of a project: in a guided way, analyze the alignment with the taxonomic guidelines of the new projects at the risk level, that is, whether or not they meet the taxonomic criteria that will be set by European legislation, set by the EBA (European Banking Authority).

If you want to learn more about our A4C-Risk solution contact us.