SAP Fioneer’s ESG software holds financial firms accountable for CO2 emissions

SAP Fioneer : Windmills on rolling hills.

SAP Fioneer has launched its first software solution for environmental, social and governance (ESG) data. This new solution is dedicated to the orchestration and calculation of sustainability portfolios to encourage single exposure KPIs, plugging the data gaps so banks and insurers can remain ESG compliant.

Currently available on-premise, in a private cloud instance or hosted in a public cloud, the Fioneer ESG KPI Engine provides visibility into ESG-related portfolio data to encourage financial institutions to make sustainable, cross-departmental environmental decisions based on reliable insights.

To help avoid greenwashing within the industry, the software aims to create accountability and transparency around ESG regulatory obligations and reveal real-time finance and insurance-related CO2 emission levels. Financial institutions can also hope to gain time and cost savings through clearer calculations and data presentation and no need for the manual uploading of data onto spreadsheets.

Seeking to bring standardization and auditability, the software is updated in real-time to react to new regulations automatically, providing ‘data historization’, and is now compliant with the Task Force on Climate-Related Financial Disclosures (TCFD), the Corporate Sustainability Reporting Directive (CSRD) and EU Taxonomy to ensure full adherence to evolving regulations.

Maria Patschke, CEO of SAP Fioneer ESG solutions, said: “Banks and insurance companies are the biggest source of capital, so it’s of little surprise that their ESG regulatory obligations are increasingly under the spotlight. With over $90tn in financed emissions assets disclosed under [the Partnership for Carbon Accounting Financials] PCAF, financial institutions naturally want to avoid the reputational risk of greenwashing – but the lack of (useable) data to analyze their portfolios is a huge concern for many. Until now.”

With an architecture-agnostic approach, the Fioneer ESG KPI Engine can be implemented in any existing financial institution infrastructure. The engine is said to cover all asset classes and markets, whether the data can be sourced or not.

Patschke adds: “We believe our solution represents a pivotal step towards a greener, more sustainable financial industry. By equipping financial institutions with the tools they need to navigate the complexities of ESG regulations on portfolios, loans and investments, we envision a future in which transparency and sustainability drive business decisions.”