AMX has launched a new climate-reporting hub which aims to collate and standardise a range of climate data, helping trustees meet their regulatory responsibilities.
AMX is a platform and ‘investment ecosystem’ developed by Willis Towers Watson. It is in the process of being acquired by Carne Group with a view to making it more widely available to clients across the asset owner and asset manager industry.
This new low-cost hub, called AMX Zero, has been designed to tackle the problem of fragmentary climate data, much of which is not standardised, in order to produce five standarised metrics that are used to produce pension schemes’ TCFD (Taskforce for Climate Related Financial Disclosure) reports.
AMX says pension trustees still face significant challenges navigating a complex ecosystem when it comes to completing these reports. From 2022 large pension schemes must products these TCFD report, with smaller and medium-sized schemes following next years.
AMX CEO Oliver Jaegemann says: “AMX Zero is a service that brings together investment consultants, asset managers, data and climate specialists through one seamless and accessible technology solution.
“If the investment industry is to lead the way, we must come together to create a solution that facilitates standardised climate-related reporting for all pension schemes. Simply put, we cannot rely on the tools of the past to solve the most complex challenge of modern times.”
While the pension industry in the UK has lead the way in climate-related disclosures, these reports are expected to become standard in other jurisdictions, particularly with the advent of the EU Sustainable Finance Disclosure Regulation (SFDR).
AMX says there is also a structural change occurring in the investment industry that is not being driven by regulation, with more consideration of ESG factors, that fall outside of traditional financial metrics
AMX expects the demands on all industry participants for reporting and data will increase and mature over time. It believes that without scalable technology this will create a large amount of cost and inefficiency, but the greatest risk for all industry participants will be failing to meet their targets and promises.
Jaegemann adds: “Bringing all this data together across the industry requires a lot of dedication and focus but is essential for the industry and wider society. AMX is ideally suited to this task, with an open architecture operating model that connects the industry, creating opportunities to innovate, find new solutions, generate ideas and enhance relationships.”