AMX has today announced the launch of AMX Zero, a low-cost climate reporting hub that enables Pension Trustees to solve the problem of fragmented climate data and lack of standardised reporting in order to meet their regulatory responsibilities on climate.
2022 is a landmark year for climate regulation with the UK government requiring large pension schemes to produce reporting that follows recommendations from the Taskforce for Climate-related Financial Disclosures (“TCFD”), with smaller and medium-sized schemes following next year.
Encouraged by industry bodies such as the PLSA and Accounting for Sustainability, many UK pension funds have taken significant strides in implementing climate polices in recent years, such as committed net zero targets and climate targets built into investment selection criteria.
However, pension trustees face a significant challenge navigating a complex and fragmented investment ecosystem that hasn’t historically developed standards for data and reporting.
AMX Zero manages the complexity of connecting and collecting data on behalf of pension funds and produces five standardised metrics that are used to produce schemes’ TCFD reports*.
Oliver Jaegemann, CEO, AMX, said: “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.”
Over the next two-to-three years pensions trustees will be required to adapt to TCFD, starting in the UK but expected to become standard in other jurisdictions, as well as the EU Sustainable Finance Disclosure Regulation (SFDR).
However, a structural change is also occurring in the investment industry that is not being driven by regulation, with more considerations being taken in the investment processes that fall outside traditional performance metrics, broadly referred to as “ESG” criteria.
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 said: “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.”
Notes to editors
*How AMX Zero works:
Pension Trustees sign up to AMX Zero, appointing AMX as their reporting agent and providing details of their investments, consultants and service providers.
AMX Zero takes care of all the complexity of connecting and collecting data on behalf of the Pension fund using our expertise.
Pension funds can select from an initial 5 TCFD metrics and can elect to use AMX’s standard TCFD report.
Consultants can complete a TCFD report online or offline.
Completed reports and data are stored on AMX Zero.
About AMX
AMX is building a better world for the investment industry.
Launched in 2017, our platform connects investors, managers and service partners so they can interact and transact – all in one place.
AMX cuts through the complexity of investing and makes life easier and more efficient for everyone involved:
Our ecosystem aims to connect investors, managers and service partners seamlessly.
We standardise processes, so there’s one simple way of working that’s better for everyone.
Everything is centralised in one place, so it’s easy to find what you need.
We are the architects of the investment ecosystem, using technology to transform conventional ways of working to become more nimble, responsive and sustainable. Our ecosystem enhances relationships, creates connections and brings efficiencies.
The investment industry is complicated. But, together, we’re making it better.
