A wide range of companies in the EU are required to report on their environmental, social and governance (ESG) performance. Financial professionals and institutions also need to provide ESG information on their portfolio companies, which can be challenging.
ESG compliance and monitoring tool
“Gathering, aggregating and monitoring non-financial data related to sustainability is a complex task, particularly when it must cover both listed and private assets,” explains Anand Pattabiraman, CEO of esgwize. After 25 years in Luxembourg’s fund industry, he set out to address the problem himself. He created esgwize in 2022 to develop an investment compliance and monitoring tool enabling asset managers and service providers to automate and centralise their sustainable investments-related non-financial data.
I thought Luxembourg would be the ideal place to develop our solution together.
To create a cutting-edge SaaS platform, esgwize partnered with IQZ Systems, a global technology consultancy specialising in AI-driven automation and digital transformation. Rather than simply offering a tool, the company aimed to understand its clients’ processes and aspirations and help optimise them – which is exactly how IQZ Systems works. “Given the company’s approach and expertise in artificial intelligence (AI), I thought Luxembourg would be the ideal place to develop our solution together,” says Anand Pattabiraman. “There is still much room for automation and technological transformation in the finance industry here, so there is great market potential for us both.”
IQZ Systems: Entering Europe
For IQZ Systems, the partnership with esgwize opens the door to a new exciting market: Europe. Headquartered in Atlanta, USA, the company has so far focused on the North American market. “For us, Luxembourg is the gateway to Europe,” emphasises Sathish TK, CTO of IQZ Systems. In addition to the enormous number of financial transactions flowing through the country, the company was attracted by opportunities in data management, AI, intelligent automation and app modernisation, where it could help make the financial industry more cost-effective.
The solid infrastructure and high-capacity network are a huge advantage when you push technologies like AI.
To take its activities in Europe further, IQZ Systems incorporated in Luxembourg at the end of 2024 and plans, in time, to expand its service offering to wide range of clients in the Luxembourg ecosystem. “The solid infrastructure and high-capacity network are a huge advantage when you push technologies like AI,” says Sathish TK. “What’s more, you don’t need to be a large or well-known company to make an impact here. We are just 140 people, but this means that we can be nimble, agile and efficient.”
“A warm and welcoming place”
The decision to expand in Luxembourg was also driven by personal experience gained during a private visit to the country a few years ago. “I was truly taken by the place and thought, ‘It would be great to have an office here’,” he recalls. “There was something warm about the country and the people. Even when you work with AI solutions, in the end it’s all about connecting with others and doing business with people with whom you like to work.”
Esgwize also plans to expand beyond the Grand Duchy and Ireland, the two being the key European hubs. Its solution has been designed to suit customers globally. “Our objective is to empower organisations to meet regulatory requirements, enhance sustainability performance and create long-term value in an evolving global market,” Anand Pattabiraman concludes.