The ESG Disclosure Guide automatically assesses which disclosure obligations a company needs to fulfil to comply with the Disclosure Regulation. With the goal of integrating sustainability risks in investment decisions, the Disclosure Regulation requires financial market participants, insurance intermediaries and financial advisors to comply with strict transparency and disclosure requirements. Some of the obligations that firms will need to satisfy consist of the publication of written policies on the integration of sustainability risks in their investment decision making process, making pre-contractual disclosures, publishing sustainability investment targets and periodical reports and complying with transparency rules. The ESG Disclosure Guide facilitates the self-assessment of the obligations that apply to a certain type of product and market participant. As a result, the tool generates a full report of the identified requirements and guides the user through the implementation in order to achieve full compliance.
The tool’s modular logic contains all applicable guidelines and amendments which can easily be updated to accommodate changing laws and to provide tailored advice to businesses.

Background

The EBA’s (European Banking Association) Action Plan on sustainable finance shows that regulators are encouraging firms to be more transparent and proactive. In an effort to consolidate and expand on existing guidelines, the introduction of the Disclosure Regulation by the EU seeks to harmonize existing provisions in connection with sustainability-related disclosures to investors. The Regulation imposes requirements on so-called financial market participants (e.g. AIFMs and UCIT management companies and investment firms carrying out portfolio management) and financial advisers (firms authorised under MiFID to give investment advice and credit institutions) in relation to financial products (e.g. AIFs, UCITS). Navigating through these specific disclosure requirements proves to be a time-consuming and onerous task.
With BRYTER, law firms can build an automated ESG Disclosure Guide that determines which disclosure obligations apply and how to satisfy them. To start the assessment, the user is guided through a series of questions relating to the type of product and its characteristics as well as existing index benchmarks. The input determines the scope and obligations the particular business needs to comply with under the Disclosure Regulation. Due to the open architecture of the BRYTER platform, the embedded modular logic of the tool can easily be amended to account for any changes in the law.

Benefits

Automated & Standardized

The ESG Disclosure Guide allows companies to auto-assess their business against the EBA’s Disclosure Regulation with regard to their financial products through a standardized process. This ensures a consistent approach and documentation.

Centralized audit trail

Within the ESG Disclosure Guide, all collected information, advice and next steps are tracked and documented in a centralized audit trail. This allows businesses to prove and document compliance efforts, if needed.

Integrated

The ESG Disclosure Guide can easily be integrated into an existing IT infrastructure so that users can for example access the tool via a client portal or within their company’s intranet.

Highly customizable

As every application built on BRYTER is customizable, the ESG Disclosure Guide may contain guidance for market participants of all sizes and can easily be updated to accommodate changing laws.

How it works

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Go through Q&A

By clicking through a customizable and user-friendly questionnaire, the user provides all relevant information such as the type of market participant, the characteristics of the financial product and applicable index benchmarks . The user’s input then determines which disclosure requirements apply to the particular business.

Generate assessment report

An assessment report is generated based on the provided information. This report not only outlines the assessment result but also provides the user with next steps to achieve full compliance with the ESG-related disclosure obligations.

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Keep up-to-date

The open architecture of the BRYTER platform allows the application to be updated continuously in the background ensuring that the generated advice is always compliant and up-to-date with any changes in the law.