As part of the Global Financial Innovation Network (GFIN) cross-border testing pilot, Bedrock AI Inc. and Business Reporting Advisory Group (BR AG) have been selected to test and further develop their business solutions. The Polish company BR AG will test and develop a sustainability reporting template that allows to monitor how financial market participants manage sustainability-related risks and to perform climate change-related data analysis; the analysis would involve the assessment of financial assets and portfolio sustainability risks and of carbon footprint in the projects financed by financial market participants, along with the identification of sectors that make a significant impact on climate change. The practical suitability of this template, which could be used globally, will be assessed by three central banks and three financial market supervisory authorities.
The Board of the Bank of Lithuania has permitted BR AG to test the solution using its regulatory sandbox. Project participants will also include the central banks of the United Arab Emirates and Bahrain as well as the financial market supervisory authorities of Abu Dhabi (United Arab Emirates), Astana (Kazakhstan), and Bermuda, which all belong to the Global Financial Innovation Network (GFIN). Together with the Bank of Lithuania, they will assess this tool in the regulatory sandbox, so that the markets are better prepared for sustainability reporting, which is planned in the future. BR AG's solution "ATOME: Matter" is dedicated to the development of metadata-based reporting forms that could be used both by supervisory authorities and consultancy companies or market participants, using an innovative environment. Depending on the needs, this tool may be harmonized with various standard international reporting requirements or converted to other technical formats. Application Programming Interfaces (APIs) may be used for the exchange of technical files.
Additionally, Bedrock AI Inc. has been selected to test and further develop its algorithmic solutions to process and identify flags in Canadian corporate disclosure documents. During the testing, the participating GFIN regulators will be evaluating the algorithmic output of the model and providing feedback to Bedrock AI to further develop their algorithmic solutions in the Canadian context.
Keywords: International, Europe, Lithuania, Banking, Reporting, ESG, Regulatory Sandbox, Climate Change Risk, Regtech, API, ATOME, Suptech, Bank of Lithuania, GFIN
Dr. Denton provides industry leadership in the quantification of sustainability issues, climate risk, trade credit and emerging lending risks. His deep foundations in market and credit risk provide critical perspectives on how climate/sustainability risks can be measured, communicated and used to drive commercial opportunities, policy, strategy, and compliance. He supports corporate clients and financial institutions in leveraging Moody’s tools and capabilities to improve decision-making and compliance capabilities, with particular focus on the energy, agriculture and physical commodities industries.
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