Financial institutions have a pivotal role in driving sustainability and decarbonization across global economies by re-orienting capital flows towards more a green and sustainable future in alignment with UN SDGs (United Nations Sustainable Development Goals). In parallel, multiple sustainability disclosure frameworks and governmental directives are demanding Financial Services organizations to not only report on the emissions caused by their lending, investing and advisory portfolios but also define strategy, action plan, and track progress on portfolio decarbonization and integrate sustainability across its value chain.

To address these challenges, Financial Institutions require a broad set of technology capabilities to harvest large and diverse sets of non-financial data about its clients and investee companies like sustainability parameters, emission factors and their impact on water, waste, biodiversity, climate change, society and integrate them into decision making across value chain. The diversity across asset classes, sectors, and geographies coupled with non-availability of required data within bank systems and evolving standards, make financed and facilitated emissions measurement and respective decarbonization journey a complex and challenging ask which academicians term as a “wicked problem”.

HCLTech’s Sustainable Finance 360 (SF360) is crafted for financial services institutions to address these challenges and accelerate their decarbonization journey. SF360 provides end-to-end services – from Advise to Execute - for implementing the solution to measure and manage financed emissions. The solution provides capability to harvest data from multiple internal and external data sources, quantify and aggregate emissions, analyze and report financed emissions across asset classes, set targets for Net-Zero, steer strategy, and enable pathways analysis as per ESG standards.

The solution aims to enable financial institutions to progress from just being compliant with regulatory reporting to proactively investing toward a sustainable future. SF360 leverages quantification methodology specified by Partnership for Carbon Accounting Financials (PCAF) Standard and aligns to Green IT principles of software development. SF360 is implemented on AWS using multiple native services such as AWS Amplify, AWS Lambda, AWS RDS and AWS QucikSight.

Core Principles of HCLTech’s Sustainable Finance 360 (SF360) Solution for Managing Financed emissions

Data Foundation: Single repository of sustainability information model with financial reporting grade rigor and control on sustainability data.

Accuracy and Comparability: Progressively improve methodology and emission calculations around ESG data and compare against multiple quantifications.

Mainstreaming Sustainability: Facilitate ESG into client engagement, operations, budgeting and capital allocation.

Fluidity: Ability to quickly add new asset classes, automate data harvesting and add quantification methodologies.

Trust and Audibility: Quantifiable, forward-looking targets which are linked to actions with an end date lineage.

Sustainable IT Aligned: Designed with GSf principle's and practices at the core.