Investing in sustainability with ESG profiling of your corporate clients

Esg profiling for corporate clients

The EU’s Corporate Sustainability Reporting Directive (CSRD) significantly affects the financial sector and emphasises ESG principles. Harmoney’s compliance platform supports this new regulation by incorporating ESG profiling into its questionnaires. Learn more about this feature.

CSRD and sustainability goals in finance

The introduction of the CSRD by Brussels has triggered a major shift in the banking sector. The directive mandates EU-based companies to disclose how they handle social and environmental issues within their business operations. With the CSRD, the EU’s main goal is to improve the transparency of sustainability information, allowing investors and customers to make more informed, sustainable choices. This directive is a key component of the European Green Deal and fits within Europe’s broader ESG (Environmental, Social and Governance) framework.

ESG in banking

The CSRD directive also has a direct impact on the financial sector. Banks, insurers and leasing companies will need to be more precise in their ESG practices and reporting. In taking their obligations a step further, the new regulation presents financial institutions with a unique opportunity to drive sustainable development through their loans and investments. To make this happen, financial players must focus on developing new tools and strategies to assess their ESG performance in a cost-efficient and scalable way.

Harmoney compliance platform and ESG profiling

The Harmoney compliance platform is perfectly aligned with both the CSRD directive and the ESG criteria of financial institutions. ESG profiling is a key feature of Harmoney's customised KYC onboarding questionnaires. When new companies are onboarded as clients, their ESG efforts are automatically questioned and assessed. This enables leading banks, brokers and leasing players to go above and beyond tick-box compliance.

Collecting this additional ESG profiling information gives financial institutions better insight into their clients' sustainability goals and performance. This is particularly valuable for investors looking to make more informed investment decisions. Additionally, this profiling helps organisations meet their legal obligations under the MiFID directive.

The Harmoney platform streamlines your onboarding and compliance processes, using automated screening features and AI-based risk assessments. Get in touch to find out more.