Summary
Cut through the green tape
We don’t push agendas. At Net Zero Compare, we cut through the hype and fear to deliver the straightforward facts you need for making informed decisions on green products and services. Whether motivated by compliance, customer demands, or a real passion for the environment, you’re welcome here. We provide reliable information—why you seek it is not our concern.
Details
Deep dive
What Does Clarity AI Do?
Clarity AI helps companies and investors assess, analyse, and report on their sustainability efforts. Whether you're trying to track your organisation's environmental impact or comply with regulations, this platform provides the tools you need. It’s powered by advanced AI (artificial intelligence), meaning it can process vast amounts of data and deliver reliable insights quickly.
How Does It Work?
Clarity AI works in a way that makes it flexible and easy to use for different organisations. It’s built like a set of digital building blocks, so you can pick and choose the tools you need. For example, if you only want to analyse data, you can just use that part of the platform. If you need more, like detailed reports or advanced tools for tracking progress, you can add those too. This makes it work for small businesses and large corporations alike.
You can also connect Clarity AI to your existing systems using APIs. API (Application Programming Interface) is like a digital bridge that allows two different software systems to talk to each other and exchange information. Instead of manually pulling data from one system and inputting it into another, APIs automate this process. For example, if your company uses a tool to manage financial data, Clarity AI can plug into that tool and add sustainability features. Clarity AI prides itself on fast API integration. For example, they mention that their API setup can be completed in as little as three weeks, with full support and troubleshooting to ensure a smooth process.
Use Cases: How It Helps Different Industries
Asset Managers & Owners
Needs | Clarity AI Solutions |
ESG-related asset allocation customisation capabilities | Incorporate house views in the most comprehensive & granular sustainability tech kit available with broad, reliable data coverage |
Portfolio reporting for regulators & clients | 3 clicks from portfolio to report with comprehensive, always-up-to-date SFDR, EU Taxonomy, and IFRS Foundation capabilities |
Advanced Reporting vs. UN Sustainable Development Goals | Go beyond revenue alignment to assess the impact of a company’s operations across all 17 UN SDGs* |
Seamless integration into your existing workflow | Fully adaptable API connection or web-based widgets |
Custom compliance for stakeholders' requirements | A fully customisable set of indicators in an easy-to-use SaaS-based tool with reliable data |
*United Nations Sustainable Development Goals (SDGs) are 17 global goals designed to address issues like poverty, inequality, climate change, and sustainable economic growth. Clarity AI helps organisations understand, measure, and report their impact on the SDGs with data-driven insights.
Wealth Managers
Needs | Clarity AI Solutions |
Client-ready, crystal-clear portfolio insights | Compare clients’ investment impacts to tangible metrics like CO2 savings or energy use reduction |
Asset allocation customisation capabilities | Incorporate house views in the most granular sustainability tech kit with broad, reliable data |
Portfolio reporting for regulators | 3 clicks from portfolio to report with comprehensive SFDR, EU Taxonomy, and IFRS Foundation capabilities |
Tech Platforms
Needs | Clarity AI Solutions |
Worry-free, quick integration | 3x faster integration vs. other sustainability tech via user-friendly widgets and APIs |
Ability to aggregate sustainability analytics for clients | Provide sustainability metrics at the portfolio and individual level in a fully hosted backend |
Market-leading sustainability expertise | Access reliable data from 2,000,000 data points processed biweekly |
End-to-end solution delivery | Deliver insights and analysis with broad, reliable data coverage |
Banks
Needs | Clarity AI Solutions |
Reporting on sustainability frameworks and metrics | Access comprehensive sustainability tech with reliable data coverage |
Integrating sustainability criteria into credit scoring | Adaptable API connections or widgets for seamless access to capabilities |
Reporting on green/sustainable bonds* | Provide estimated data for pre/post-issuance green bond reporting |
Stress testing against climate goals | Climate scenario analysis aligned with the Paris Agreement |
*Green bond reporting is the process of tracking and sharing information about how the funds raised through green bonds are being used. A green bond is a type of investment where the money is specifically allocated to environmentally friendly projects, like renewable energy, clean transportation, or energy-efficient buildings. Reporting ensures that the projects funded by these bonds truly meet environmental goals and that investors know their money is making a positive impact.
Companies
Needs | Clarity AI Solutions |
Assess sustainability performance to identify strengths | Boost awareness with benchmarks across 300+ indicators |
Attract sustainable investment by communicating efforts | Understand the data investors use to make transparent investment decisions |
Ensure investors see a reliable, fair view of the company | Validate and update data with an easy-to-use SaaS tool |
Time-effective sustainability reporting for stakeholders | Easily report data to regulators and stakeholders |
Consumer Platforms
Needs | Clarity AI Solutions |
Trustworthy information on brands’ sustainability | Access reliable sustainability data for 30,000+ companies |
Consumer-friendly, easy-to-understand metrics | Translate metrics like carbon emissions into simple visuals |
Full integration into existing e-commerce platforms | Easy API integration within 3 weeks with troubleshooting support |
Source: clarity.ai
Summary
Clarity AI provides customised sustainability tools for different industries. Asset managers and wealth managers use it to make portfolio reporting easier and ensure their investments follow rules like the EU Taxonomy and IFRS standards. Asset owners get tools to meet compliance requirements and gain deeper insights into UN Sustainable Development Goals (SDGs).
For tech platforms, Clarity AI offers quick integrations and detailed sustainability data for portfolios and individual assets. Banks use it to track green bonds, include sustainability in credit scoring, and analyse how climate goals, like the Paris Agreement, affect their work.
Companies use Clarity AI to measure their sustainability efforts, attract eco-conscious investors, and make reporting easier for stakeholders. Consumer platforms can access reliable sustainability data and create simple, engaging visuals for e-commerce websites.
With its adaptable tools and features for specific industries, Clarity AI helps organisations make smarter, sustainability-focused decisions.
Workflow Integration
API and Widgets
Clarity AI’s API and widgets make it easy to connect sustainability tools to your existing systems. They allow you to pull in real-time data for tasks like ESG risk analysis or checking compliance with frameworks like the EU Taxonomy. For example, if you have an investment platform, you can integrate these tools to show sustainability metrics directly to your users. It’s seamless, automated, and saves time
Web App
If you don’t want to deal with integrations, you can use Clarity AI directly through a simple web app. This app gives you everything in one place, whether you’re analysing data, creating reports, or testing out ideas for improvement. It’s designed to fit into your daily work, so you can get things done faster and more efficiently. The dashboard is easy to use and shows all your key metrics, such as ESG scores, emissions, and compliance data. This makes it a great option for managing and tracking sustainability efforts without needing extra integrations.
How does Clarity AI Handle Compliance
SFDR Compliance
Clarity AI helps users align with the Sustainable Finance Disclosure Regulation (SFDR). It identifies how funds meet SFDR Article 8 and 9 criteria by checking if investments:
Do no significant harm to environmental or social goals.
Align with good governance standards.
For example, it flags when a company fails on criteria like biodiversity or governance breaches and provides detailed insights for corrective actions. Users can also see how revenues align with SDGs or frameworks like the EU Taxonomy.
EU Taxonomy Alignment
The platform checks whether company activities align with the EU Taxonomy by assessing three key factors:
Substantial contribution to an environmental goal (e.g., renewable energy).
No significant harm to other goals.
Meeting social safeguards like fair labour practices.
Clarity AI uses a massive database to map revenues from over 40,000 companies to more than 1,500 economic activities. For example, it can confirm if a company’s revenue from solar projects meets the Taxonomy’s eligibility and alignment standards.
Principal Adverse Impacts (PAIs)
Clarity AI tracks PAIs, which are negative effects investments may have on the environment or society, such as high carbon emissions or poor board diversity. It covers 16 mandatory and 29 optional PAI indicators for over 50,000 companies. Users can:
Aggregate emissions or biodiversity impacts across portfolios.
Quickly generate compliance-ready reports.
MiFID II / IDD
With the latest update, Clarity AI now supports financial advisors and managers in meeting client sustainability preferences under MiFID II regulations. For example:
It helps classify securities (funds, bonds, etc.) based on ESG alignment.
It integrates sustainability assessments directly into workflows for efficient reporting.
Pillar 3 Disclosures
For banks, Clarity AI simplifies mandatory Pillar 3 disclosures by:
Providing top-tier data for greenhouse gas emissions and scenario analysis.
Offering tools to calculate Green Asset Ratios (GAR) and Banking Book Taxonomy Alignment Ratios (BTAR).
Strengthening disclosures with actionable insights.
ESMA Guidelines
Clarity AI ensures that funds meet ESMA’s requirements for sustainable investment names. For example:
It checks if funds meet the 80% sustainability threshold.
It screens revenues from activities like coal or oil to avoid greenwashing.
Source: clarity.ai
Plans and Pricing
Clarity AI offers custom pricing options with a focus on sustainability and ESG data services. The pricing is primarily based on yearly licenses and varies depending on the client's needs.
On AWS Marketplace, Clarity AI offers ESG Risk Scores API/Datafeed with the following pricing structure:
Tier | Annual Subscription per Unit | Cost/12 months |
|---|---|---|
Tier 1 | Annual subscription | $10.00 |
Tier 2 | Annual subscription | $20.00 |
Since Clarity AI mainly offers custom pricing case by case, it's recommended to contact Clarity AI directly through their website or request a demo.
Closing Insights
Clarity AI takes the stress out of managing sustainability requirements. It makes complex tasks like ESG reporting and compliance straightforward, so you can focus on running your business with confidence. With clear insights and easy-to-use tools, it helps you meet industry expectations and stand out as a reliable and professional organisation.
Whether you’re managing portfolios, preparing reports, or assessing risks, Clarity AI provides the data and solutions to help you meet expectations and make informed decisions. By making these processes straightforward, it ensures your organisation stays compliant, avoids unnecessary risks, and positions itself as a trustworthy, forward-thinking leader in the industry. It’s not just about checking boxes—it’s about running your business with confidence and professionalism.
