Greenomy Funding Validates Growth Opportunities Available To ESG Regulatory Software Providers
ESG software provider, Greenomy, has announced that it has raised funding from Euroclear, a Belgium-based financial services company. Founded in 2020, Greenomy is headquartered in Brussels, Belgium and boasts a strong list of existing partners including Accenture and Deloitte. Greenomy provides a SaaS solution for firms to create and gather granular Taxonomy-aligned data. Additionally, the solution can be used by stakeholders to manage and analyze Taxonomy-aligned data from a portfolio of firms – ensuring that a network of stakeholders have access to the collated data, including auditors, intermediaries, investors and lenders.
Although Greenomy’s solution is currently focused on providing solutions for EU sustainable finance regulations, there is scope for the solution to be adapted to the emerging ESG taxonomies which are in the process of being developed – including the UK’s green taxonomy which is being created through the support of the Green Technical Advisory Group (GTAG). As taxonomies develop globally, Greenomy has positioned itself in the forefront of the software landscape, establishing a solution capable of meeting the myriad of ESG taxonomy data requests from the global market infrastructure.
Greenomy’s funding reflects the significant market opportunity available for software firms to provide solutions with a ESG regulatory focus. A recent Verdantix study found that ‘regulators requiring a more comprehensive ESG disclosures’ was the largest cause for an increase in sustainability initiatives spending – with 75% of the 400 ESG managers outlining that this shift would cause at least a two times increase in sustainability initiatives spending.
Jurisdictional mandatory ESG regulations are increasing in scope and will ensure there are notable differences to how corporates disclose ESG data. For corporates to align with these requirements, sophisticated software solutions are required to collate data from disparate sources to adhere to the emerging regulatory requirements. As mandatory ESG regulations become established in a plethora of jurisdictions over the next 5 years, software solutions will be required to enable corporates to report the data in an accurate and timely manner.