ESG reporting frameworks

Today the landscape of sustainable funds classified with article 8 and 9 of SFDR is vast and disorganized. The managers of these funds complain about the lack of accurate information about the assets on their portfolio. This is such a big problem since they have to report the emissions caused by the assets they own.

For this reason, ESG experts are working to make a standard template that will facilitate the comparison between different companies, allowing investors to make better data-driven decisions.

However, at the moment there is massive chaos in the ESG world.
Each fund or ESG rating company have different parameters to measure the decarbonization and there are often omitted controversial data on CO2 emissions.

Uncertain frameworks

This uncertain situation is assumed to improve when the Regulatory Technical Standards for the disclosure of sustainable products will be applied and aligned with EU Taxonomy. However, we have to wait until January 2023 for this to come true. Meanwhile, managers of investment funds cannot accurately inform their investors because of the lack of data, causing a high risk of greenwashing.

To avoid risks of greenwashing we need more transparency showing how companies integrate sustainability in their activities and products, we need to verify the ESG preferences of the clients, and, most importantly, we need accurate data to measure and compare companies’ impact.

Only with a science based framework can the investors make the right decisions.

About us

Dedalo AI has created a tool to measure the precise CO2 impact of websites on all their user devices. The measurement proves to be accurate, as it takes into account the hard-to-measure variables listed above. The mission is to make both users and companies aware of how software can have major, yet silent, consequences on climate change if no action is taken immediately as Internet access is growing at a faster pace than renewable energy.