Finastra integrates AI-powered ESG scoring into Trade Innovation platform with TradeSun partnership

In a significant development for the trade finance sector, Finastra announced the integration of AI-powered environmental, social, and governance (ESG) scoring capabilities into its Trade Innovation platform. This enhancement, achieved through a partnership with TradeSun, incorporates CoriolisESG technology, enabling users to access automated ESG insights alongside their trade and supply chain finance operations.

Iain MacLennan, Head of Trade and Supply Chain Finance at Finastra, emphasized the growing necessity of sustainability in trade. “Sustainability is a growing imperative in the world of trade and with the continued emergence and development of regulations in this space, organizations must ensure they can measure their impact to help meet the worldwide ESG mandates and understand where risk can be better managed,” MacLennan stated. He highlighted that this new integration aligns with Finastra’s mission to unlock the power of finance for everyone, underpinning their commitment to ‘doing well by doing good.’

The new solution leverages globally recognized frameworks, such as the UN Sustainable Development Goals and the EU Taxonomy, to enhance enterprise resilience and intelligence. It provides comprehensive insights into international business activities, risk assessments, regulatory compliance, geopolitical risks, due diligence, and supply chain analysis, thereby facilitating more informed decision-making and sustainability measures.

Nigel Hook, Founder and CEO of TradeSun, expressed enthusiasm about the partnership, noting its potential to advance global sustainability goals. “We’re really pleased to be a fintech partner for Finastra. This integration of TradeSun’s CoriolisESG technology into Finastra’s user base provides more businesses with economical solutions that help advance their wider sustainability goals,” Hook said.

The partnership encompasses the full TradeSun Intelligence platform, which includes features like optical character recognition (OCR), document checking, real-time compliance, and global markets analytics, all with integrated ESG assessment conforming to the International Chamber of Commerce (ICC) Principles for Sustainable Trade.

Ines Zucchino, SVP of Strategy and ESG at Finastra, commented on the impact of the integration. “It’s wonderful to see this solution come together to deliver our customers tools which not only help drive efficiencies in the lending space, but really have the potential to make an impact when it comes to sustainability,” Zucchino remarked.

The integration of AI-powered ESG scoring into Finastra’s Trade Innovation platform represents a pivotal step in the fusion of technology and sustainability within the financial sector. By leveraging advanced analytics and global sustainability frameworks, Finastra not only enhances the functionality of its trade finance solutions but also aligns its operations with broader global sustainability efforts. This strategic move not only boosts Finastra’s competitive edge but also solidifies its role as a leader in promoting sustainable practices in finance.