London-based fintech Finastra will offer automated ESG scoring across its trade and working capital solutions following a partnership with technology provider TradeSun. 

The scoring tool collects information relating to entities’ business activities, supply chains and risk profiles, measuring that data against globally recognised frameworks such as the UN’s Sustainable Development Goals. 

It is being made available across Finastra’s trade and supply chain finance offering, enabling users to “power more sustainable business flows”, the company says in an April 16 announcement. 

“Sustainability is a growing imperative in the world of trade and with the continued emergence and development of regulations in this space, organisations must ensure they can measure their impact to help meet the worldwide ESG mandates and understand where risk can be better managed,” says Iain MacLennan, Finastra’s head of trade and supply chain finance. 

To bring the solution to users, Finastra has integrated TradeSun’s CoriolisESG technology into its offering. TradeSun initially developed an ESG scoring system powered by trade analytics provider Coriolis Technology in August 2022, before acquiring the company in December the same year. 

“We’re really pleased to be a fintech partner for Finastra,” says TradeSun founder and chief executive Nigel Hook. “This integration of TradeSun’s CoriolisESG technology into Finastra’s user base provides more businesses with economical solutions that help advance their wider sustainability goals.” 

Ines Zucchino, senior vice-president of strategy and ESG at Finastra, adds the solution will “help drive efficiencies in the lending space” as well as boost sustainability. 

The announcement marks the latest in a series of TradeSun partnerships. The company announced this week it had entered into an agreement with Wells Fargo to use artificial intelligence to streamline complex and manual processes within the bank. 

In December, TradeSun linked up with consultancy ReThink Sustainability to help users develop ESG strategies once they have received a score from the CoriolisESG tool. 

The announcement also marks another sustainability-focused initiative from Finastra, after last year’s launch of an automated tool that aims to help banks streamline sustainability-linked lending by managing KPIs and pricing adjustments. 

In February this year, Finastra partnered with financial sector consultancy Tesselate to launch a trade finance platform that targets US banks looking to automate manual processes, and last October joined with e-commerce provider Elcy to develop a platform connecting corporates and trade finance lenders.