Pantas Launches a Climate Due Diligence Solution for Financial Institutions and Institutional Investors

  • Pantas debuts a Climate Due Diligence Solution powered by its Human Augmented Intelligence (HAI) technology at Singapore Fintech Festival 2022.
  • Financial institutions and institutional investors are able to avoid financing and investing in companies engaging in greenwashing via Pantas Climate Due Diligence Solution.
  • The solution enhances the mobilization of green capital and protects the integrity of the sustainable finance markets.

SINGAPORE, 2 NOVEMBER 2022 – Malaysian-based climate tech startup Pantas Software debuts a Climate Due Diligence Solution during Singapore Fintech Festival for financial institutions and institutional investors to manage climate investment risks. Pantas Climate Due Diligence Solution is powered by Human Augmented Intelligence (HAI) technology that combines human expertise and algorithms to identify misreporting within a company’s climate report.

A unique solution in the sustainable finance market

Pantas Climate Due Diligence Solution analyzes publicly disclosed climate data from companies’ annual or sustainability reports to identify inaccurate or incomplete reporting. Climate disclosures are often prone to errors due to the lack of technical knowledge and the manual processes used to conduct carbon accounting. These reporting errors can lead to serious allegations of greenwashing.

The sustainable finance market has grown hundredfold globally in the last decade. However, there are growing concerns that green capital is being deployed based on misleading information. Greenwashing probes are becoming more commonplace and financial regulators are increasingly scrutinizing potential greenwashing claims within the investment industry.

Pantas Solution allows investors to obtain a detailed picture of their investment emissions by analyzing a company’s climate disclosure. A study by BCG found that over 90% of companies aren’t measuring emissions correctly, with over half of the companies acknowledging an error rate of as much as 40%.

Verifying a company’s carbon footprint and green claims

Pantas Solution identifies incomplete and misleading reporting by highlighting data omission or the use of incorrect emission factors. The solution also recognizes reporting that doesn't adhere to carbon accounting standards and runs year-on-year analyses on the reports to conduct more comprehensive checks into a company’s emissions and reduction strategies.

To date, Pantas Solution has analyzed a range of publicly available disclosure data and has identified reporting errors committed by companies across multiple industries. Without Pantas technology and software, this due diligence process would typically take hours and require professionals with in-depth knowledge of carbon accounting and expertise in identifying financial misreporting.

Accelerating decarbonization through access to sustainable finance

“Greenwashing not only poses serious financial, legal and reputational risks for companies, but also damages the credibility of the sustainable finance movement,” shared Max Lee, CEO and Co-Founder of Pantas.

Nikhil Rathi, the chief executive of UK’s Financial Conduct Authority, noted at the COP26 conference in Glasgow that “We can’t let this greenwashing persist and risk the flow of much-needed capital to help secure our future.”

“With HAI, Pantas aims to protect the integrity of the sustainable finance market. By giving investors the confidence they need to support a company’s green claims, Pantas will assist in accelerating the adoption of sustainable financing products,” adds Max Lee.

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Fintech Festival Singapore

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