Clarity AI SFDR Sustainable Investment Methodology Document

The Clarity AI SFDR Sustainable Investment Methodology Document outlines a structured framework for evaluating whether investments meet the sustainable investment criteria defined in Article 2(17) of Regulation (EU) 2019/2088 (SFDR). The document serves as a guide for financial market participants, providing a consistent and transparent analytical approach to assess the proportion of sustainable investments within Article 8 and Article 9 funds. It details the three essential requirements for sustainable investments: contributing to an environmental or social objective, avoiding significant harm to other objectives, and ensuring good governance practices by investee companies. The methodology employs a binary classification system for organizations and a quantitative assessment for funds, relying on reported data supplemented by proprietary estimation models. Additionally, the document discusses the analytical framework, data sourcing, limitations, and governance processes associated with the methodology, ensuring clarity in the assessment of sustainable investments.