Press release, Zürich 16th May 2023
German financial institutions are preparing for the highly complex EU taxonomy. As part of the EU’s efforts to promote sustainability, financial institutions are now required to disclose their alignment with the EU taxonomy in their annual reports. This regulation includes a classification system that identifies and promotes environmentally sustainable economic activities in order to direct capital investments toward sustainable activities.
To achieve this new sustainability target, German Landesbanken such as BayernLB, NordLB, and SaarLB have chosen the support of an AI software that a significant number of financial institutions in the DACH region have already opted for: TAXO TOOL. It was developed by Dydon AI in cooperation with the Bundesverband Öffentlicher Banken Deutschlands (VÖB) and its subsidiary VÖB-Service GmbH.
The efficient connection to the TAXO TOOL is made possible by the RSU Taxo Master solution developed by the strategic partner RSU. Users thus benefit from an integrated overall process and permanently increase their process efficiency and security.
TAXO TOOL reduces the complexity of the technical assessment criteria of the EU taxonomy for sustainability in a user-friendly software. The solution enables the assessment of economic activities according to the requirements of the EU taxonomy and thus enables a simple implementation of this regulation. With the help of TAXO TOOL, financing projects or financial products are analyzed and assessed for conformity with the EU taxonomy.
“Sustainable action is also of great importance in the banking sector and awareness of this has increased significantly in recent times. We are pleased that through the cooperation with Dydon AI and VÖB-Service, we can provide our customers with a stable system that also fulfills all regulatory requirements in this context,” explains Dana Wengrzik, Managing Director of RSU GmbH & Co. KG.
“We have set ourselves the ambitious goal of fully digitizing the highly complex set of rules of the EU taxonomy and automating the associated valuation processes as much as possible, which includes, among other things, closing existing data gaps wherever possible. TAXO TOOL is offered as a SaaS that enables financial institutions to integrate the entire valuation process into their existing processes as quickly, securely, and easily as possible,” explains Dr. Hans-Peter Güllich, CEO and founder of Dydon AI.
Indeed, the main feature of TAXO TOOL is the high level of automation that accelerates and supports EU taxonomy reporting. The AI solution integrates a Natural Language Processing (NLP) stack to capture text and responses from available documents related to the project being assessed (e.g. energy performance certificates for buildings). In addition, the software uses appropriate models to calculate carbon emissions based on procedural knowledge. This makes a big difference when it comes to cases with missing data, as is often the case with SME clients in credit institutions.
About the EU Taxonomy:
The EU Taxonomy is a classification system that creates a list of environmentally sustainable economic activities. The aim of this new regulation is to help the EU promote sustainable investment and implement the European Green Deal. The EU taxonomy provides companies, investors, and policy makers with appropriate definitions of which economic activities can be considered environmentally sustainable. In this way, it aims to provide certainty for investors, protect retail investors from greenwashing, help companies become more climate-friendly, mitigate market fragmentation and help align investments toward the 2050 climate neutrality target.
About Dydon AI
Founded in 2016 by Dr. Hans-Peter Güllich, Dydon AI is a Swiss startup offering an AI solution for sustainable finance that provides a fast, simple, traceable, and transparent assessment of all necessary criteria to rank and analyze sustainability levels in terms of ESG, EU taxonomy, and supply chain risk. Dydon AI has developed the TAXO TOOL in cooperation with the Bundesverband Öffentlicher Banken Deutschlands (VÖB) and its subsidiary VÖB-Service GmbH.
For more information – dydon.ai
About RSU GmbH & Co. KG
RSU offers banks, financial service providers, and industrial enterprises numerous professional software solutions for efficient risk management. The company was founded in 2003 by German Landesbanken and DekaBank – originally to create and operate rating models. Since then, the product range has been continuously expanded and RSU now counts over 50 companies from the financial sector among its customers.
For more information: rsu.one