SolutionsSustainable Finance
About the SolutionDriving sustainability in finance
Klappir Sustainable Finance solution is tailored to the needs of banks, pension funds, and investors, enabling consistent, auditable, and data-driven sustainability evaluations across loan and investment portfolios.
As global climate challenges intensify, finance has emerged as a powerful lever in the transition to a sustainable economy. The European Commission’s sustainable finance agenda is a cornerstone of the EU’s commitment to achieving climate neutrality by 2050, as outlined in the European Green Deal. This comprehensive strategy aims to reorient capital flows toward sustainable investments, integrate sustainability into risk management, and enhance transparency and long-termism in financial and economic activity.
Bringing standardization to ESG evaluation
The Sustainable Finance solution transforms how financial institutions assess the sustainability of their portfolios. By applying both ESG and Economic evaluation tools, it ensures that each analysis is based on standardized metrics, rooted in internationally accepted frameworks, while allowing for strategic customization. This means that no matter who performs the ESG assessment, the output remains consistent, enhancing comparability and transparency. Users can also add subjective weightings to highlight internal ESG priorities, giving financial institutions both structure and flexibility in how they assess risks and opportunities.
Key components of the EU Sustainable Finance Framework
Klappir’s solution is designed to align with and support the European Union’s broader sustainable finance framework, which includes:
EU Taxonomy for Sustainable Activities: A classification system that sets clear criteria for determining whether an economic activity is environmentally sustainable. It covers six key objectives:
- Climate change mitigation
- Climate change adaptation
- Sustainable use and protection of water and marine resources
- Transition to a circular economy
- Pollution prevention and control
- Protection and restoration of biodiversity and ecosystems
Sustainable Finance Disclosure Regulation (SFDR): In force since March 2021, this regulation requires financial market participants to disclose how they integrate ESG risks and opportunities into investment decisions—reducing greenwashing and improving transparency for investors.
Corporate Sustainability Reporting Directive (CSRD): This directive builds upon the NFRD and broadens the requirements for ESG disclosures across the corporate sector, ensuring that sustainability information is reliable, comparable, and investor-ready.
European Green Bond Standard (EUGBS): A voluntary framework ensuring that green bonds finance projects aligned with the EU Taxonomy, boosting investor confidence and project credibility.
Klappir in action: Driving ESG performance with technology
Klappir’s Sustainable Finance solution automates ESG data collection, processing, and performance benchmarking. Whether sourced from a borrower’s operations or value chain, the system transforms raw inputs into a structured ESG rating. Once a company or municipality has been assessed within the Klappir Platform, that rating becomes available to other verified users in the financial sector, creating a shared intelligence layer that reduces duplication and builds trust. This shared infrastructure allows banks, pension funds, and investors to collaborate using a common sustainability language, accelerating ESG integration across the financial ecosystem.
Linking ESG to Capital Access
One of the most strategic advantages of Klappir’s Platform is its ability to link sustainability performance to capital conditions. Financial institutions can use ESG ratings generated by the system to:
- Offer preferential lending terms to highly sustainable borrowers
- Enhance risk pricing for entities with weak ESG profiles
- Drive green capital allocation and reduce portfolio exposure to ESG risks
This ensures that capital flows to companies and projects aligned with sustainability goals, directly supporting the EU’s ambition to mobilize private finance for the climate transition.
Supporting industry guidelines and local practices
In Iceland and beyond, financial institutions are already adapting to global sustainability frameworks:
- Banks follow Partnership for Carbon Accounting Financials (PCAF) principles to quantify carbon impact in portfolios.
- Pension funds often use broader ESG frameworks to assess environmental, social, and governance factors.
Klappir supports both approaches by offering customizable evaluation modules that comply with international standards while reflecting local regulatory expectations and stakeholder values.
Evolving for greater impact
In June 2023, the European Commission unveiled an updated sustainable finance package, further enhancing the regulatory landscape. This includes:
- Expanding the EU Taxonomy to encompass more economic activities
- Introducing new rules for ESG rating providers to ensure transparency and integrity
- Simplifying ESG reporting requirements for SMEs, reducing the compliance burden while maintaining information quality
Klappir’s Platform is built to adapt quickly to these evolving standards, keeping users compliant, competitive, and future-ready.
A strategic asset for a sustainable economy
Klappir’s Sustainable Finance solution is more than a tool, it’s an enabler of systemic change. By embedding ESG into financial logic, it helps the entire financial system make better, faster, and more responsible decisions. The EU’s sustainable finance strategy aims to align economic growth with planetary boundaries. Klappir brings this ambition to life, delivering data integrity, auditability, and cross-sector collaboration through an intuitive, powerful Sustainability Platform.
Building a resilient, transparent financial future
As the European Union works to rewire financial markets for sustainability, the Sustainable Finance Solution provides the digital backbone that makes ESG analysis, reporting, and action possible, at scale, with consistency, and with confidence. Whether you're a bank assessing climate risk, an investor seeking green opportunities, or a policymaker shaping sustainable development, Klappir equips you with the tools to lead.
Want to know more?
If you would like to know more about the Sustainable Investments add-on and the Klappir Sustainability platform, feel free to contact one of our experts at service@klappir.com