Wolters Kluwer Introduces New Tools for Merging ESG and Financial Information, Facilitating CBAM Compliance
The UK has announced plans to introduce its own Carbon Border Adjustment Mechanism (CBAM) in 2027, following the European Union's lead in addressing carbon leakage in carbon-intensive sectors like cement, steel, aluminum, and fertilizers. In response, Wolters Kluwer, a leading provider of software and solutions for finance, risk, and regulatory compliance, has launched two new ESG data solutions: CCH Tagetik ESG & Sustainability for CBAM and CCH Tagetik ESG & Sustainability for Planning & Analytics.
CCH Tagetik ESG & Sustainability for CBAM is designed to simplify compliance with the EU's Carbon Border Adjustment Mechanism (CBAM) regulation. This solution enables companies to manage and report carbon emissions embedded in their imported goods effectively. It supports the declaration of emissions and the corresponding purchase and management of CBAM certificates required under EU regulations. Designed to evolve with upcoming carbon pricing regulations, it helps firms handle the growing complexity of CBAM requirements and avoid financial penalties.
On the other hand, CCH Tagetik ESG & Sustainability for Planning & Analytics empowers business leaders to align climate goals and broader ESG initiatives with financial performance. It integrates sustainability data into financial and operational decision-making, supporting predictive planning, scenario analysis, and performance management. The solution allows companies to incorporate non-financial ESG metrics alongside traditional financial metrics, enabling a more holistic view of business resilience and sustainable growth.
These solutions provide a transformative technology platform that combines ESG compliance, financial planning, and analytics on a unified platform, crucial for CFOs and sustainability officers managing complex reporting and strategic decisions. They enhance the ability to predict, plan, and act on both financial and non-financial data, ensuring alignment with evolving regulatory requirements and stakeholder expectations.
Key features of the CBAM solution include automatic AI-powered detection of CBAM-relevant goods and associated suppliers, automated emissions calculations aligned with CBAM guidelines, generation of submission-ready reports, and integration with Wolters Kluwer's carbon emissions data solution, CCH Tagetik Carbon Management. The solution includes a financial and sustainability data hub for managing the financial impacts of sustainability initiatives.
Karen Abramson, CEO of Wolters Kluwer Corporate Performance & ESG, highlights the commitment to innovation and meeting the needs of finance leaders in managing ESG-related compliance and data. The new planning and analytics solution connects financial and sustainability data, featuring AI-backed sustainability forecasting and analytics. The new CBAM solution from Wolters Kluwer is designed to automate emissions reporting for accuracy and streamline compliance.
In summary, Wolters Kluwer's CCH Tagetik ESG & Sustainability solutions provide specialized compliance tools for CBAM alongside integrated ESG and financial planning analytics, empowering companies to meet EU climate regulations and embed sustainability into core decision-making processes effectively. The CBAM regulation will come into force in 2026.
Technology plays a crucial role in Wolters Kluwer's CCH Tagetik ESG & Sustainability solutions, as they offer AI-powered automation for carbon emissions reporting, financial-sustainability data hubs, and integrated planning and analytics platforms. These technological advancements aim to facilitate compliance with the EU's Carbon Border Adjustment Mechanism (CBAM) regulation and ensure businesses can embed sustainability into their core decision-making processes.
