Context is key
To understand SFDR article 8 and Utopi, you must first understand it’s context in the wider EU Sustainable Finance Action Plan.
The EU Action plan is a major policy objective that aims to leverage financial markets to support sustainable economic growth in Europe, while managing risks stemming from environmental, social and governance (ESG) issues.
The EU Sustainable Finance Action Plan has three core objectives:
- Reorient capital flows towards a more sustainable economy
- Mainstream sustainability into risk management
- Foster transparency and long-termism
Otherwise known as ‘Light Green Funds’, SFDR article 8 is ultimately a way to drive transparency and compliance with ESG data, and gain access to more green capital.
An Article 8 Fund under SFDR is defined as:
“A Fund which promotes, among other characteristics, environmental or social characteristics, or a combination of those characteristics, provided that the companies in which the investments are made follow good governance practices.”
Deloitte
The Utopi context
Utopi IoT sensors, and the data they produce, can curate real-world insights to showcase ESG alignment and positive sustainable prioritisation. Giving Fund and Asset Managers access to the essential data they need to gain access to these SFDR funds and loans.
SFDR article 8 sustainability indicators include:
- Carbon footprint
- Energy consumption
- Emissions to water
- Water ratios
- Fossil Fuel Exposure through Assets
