Qvonto Launches ESG Risk Monitoring
Empowering Financial Institutions to Turn Regulation into Real Sustainability Impact
Copenhagen, November 2025 - In a financial world increasingly shaped by sustainability, regulatory requirements, and investor demand for transparency, Danish RegTech company Qvonto has taken a bold step forward. With the introduction of Qvonto ESG Risk Monitoring™, the Copenhagen-based RegTech is helping asset managers, fund administrators, and wealth managers transform ESG compliance into actionable insight and stronger sustainability investments.
The Rising Importance of ESG Risk Monitoring
Across Europe, financial supervisors are tightening their focus on ESG risk. Both Finanstilsynet in Denmark and CSSF in Luxembourg have emphasized that financial institutions must not only report on ESG metrics but also actively monitor and manage sustainability risks in their portfolios. ESG risk has become a key theme during FSA control visits and supervision processes.
This regulatory momentum is driven by the EU’s Sustainable Finance Disclosure Regulation (SFDR) and related initiatives aiming to increase transparency and comparability for investors’. The goal is clear: to ensure that capital flows toward truly sustainable investments and that fund managers can demonstrate measurable progress — from CO₂ emissions reduction to board diversity and gender balance and living up to human rights.
“Regulation is no longer just about ticking boxes,” says Christian W. Lysholm, Chief Commercial Officer at Qvonto. “It’s about creating real impact and giving investors’ confidence that the funds are aligned with long-term sustainability goals.”
A Complex Challenge for the Financial Industry
For asset managers and fund administrators the challenge is immense. A single fund can include hundreds of individual investment positions, each requiring analysis across hundreds of sustainability metrics — from carbon intensity and water usage to governance practices and social indicators.
“The recent focus on following up, controls and monitoring of ESG risk at asset managers has clearly emphasized the large reporting burden institutions are under,” explains Lysholm. “Following close dialogues with our clients and with the latest focus on securing ESG controls from the FSA, we have been working with a group of leading asset managers and fund administration companies to develop new solutions that support them in their daily controls and follow-up on ESG impact for all investments.”
Introducing Qvonto ESG Risk Monitoring™
The newly launched Qvonto ESG Risk Monitoring solution extends Qvonto’s established SaaS platform for sustainability reporting and SFDR report automation. Built in close collaboration with clients across Europe, the new module provides advanced capabilities to identify, assess, and manage ESG risks across all portfolio levels, build a robust data foundation through systematic monitoring of over 200 sustainability metrics, and set and track limits for reducing CO2 emissions and achieving sustainability objectives.
“With the launch of Qvonto ESG Risk Monitoring™, we want to expand our already established SaaS solution for automating SFDR and sustainability reporting to also provide solid tools to monitor ESG risk on an ongoing basis,” says Lysholm. “Asset managers need continuous visibility into ESG exposures — and our new solution delivers continuous risk monitoring and breach alerts to keep them confidently within limits.”
One of the clients Qvonto has been working closely with during the development phase, describes the difference a system can do for their daily operations: “Qvonto makes it possible consistently to monitor all relevant ESG metrics for the large range of funds we are managing, and secure full alignment with each funds’ individual ESG objectives,” says the Head of Reporting at a Nordic fund administration company. And continues: “This is an immense task — and automation is the only way for us to do it effectively and at scale.”
Proven Impact – and Measurable Efficiency
Since 2018, Qvonto has supported clients in Luxembourg, Switzerland, and the Nordics, offering the most automated ESG and SFDR reporting solutions on the market. The company collaborates closely with leading law firms and compliance houses and today serves more than 50 financial institutions through its reporting platform. Clients typically report that Qvonto’s automated solutions have saved up to 90% of manual reporting tasks, provided better overview and follow-up on ESG objectives, and strengthened communication and transparency with investors.
Turning Compliance into Competitive Advantage
While regulation often feels like an administrative burden, Qvonto’s approach reframes ESG risk monitoring as a strategic opportunity. By automating compliance, asset managers free up time and resources to focus on performance, innovation, and genuine sustainability progress.
“At Qvonto, we believe the future of finance is both digital and sustainable,” says Lysholm. “Our mission is to make ESG compliance effortless — and empower institutions to make sustainability an integral part of how they manage risk, measure performance, and communicate with investors.”
Looking ahead
Qvonto aims to further expand its platform capabilities, supporting financial institutions as they navigate the evolving ESG landscape. By combining automation, regulatory alignment, and deep sustainability insights, Qvonto continues to strengthen Copenhagen’s role as a leading Nordic fintech hub — and to empower the industry to turn regulation into real sustainability impact.
