| name | esg-mandate-compliance |
| description | Use this skill when the user asks about ESG mandate compliance, ESG grade breaches, SFDR Article 8/9 requirements, or ESG portfolio screening. Detects breaches, checks engagement history, and generates remediation plans. |
ESG Mandate Compliance
When to Activate
Trigger when user asks about: "ESG mandate breach", "ESG compliance check", "ESG grade monitoring", "SFDR classification", "Article 8 compliance", "sustainability disclosure"
5-Step Mandate Breach Detection
Step 1: Retrieve Mandate
Tool: search_internal_docs or search_regulations
Search: "ESG mandate requirements" or "minimum ESG grade policy"
Extract: Minimum ESG grade (typically BBB), exclusion lists, SFDR classification
Step 2: Check Current Grades
Tool: quantitative_analyzer
Query: "Current ESG grades for all holdings in SAM [portfolio]"
Extract: ESG grade per security, overall portfolio ESG score
Step 3: Identify Breaches
Compare each holding's ESG grade against mandate minimum:
- Grade < BBB for ESG-labelled portfolios = BREACH
- Grade downgrade from previous quarter = FLAG
Step 4: Check Engagement History
Tool: search_internal_docs
Search: "engagement notes [company name]" (filter DOCUMENT_TYPE = 'engagement_notes')
Extract: Prior engagement attempts, management responsiveness, timeline commitments
Step 5: Generate Remediation Plan
Synthesise into remediation report:
| Security | Current Grade | Mandate Min | Gap | Engagement Status | Recommendation |
|---|
| [Ticker] | BB | BBB | -1 notch | 2 prior engagements | Escalate / Divest |
Remediation Timeline:
- Immediate (T+0): Notify Investment Committee
- Short-term (30 days): Escalated engagement with company management
- Medium-term (90 days): If no improvement, begin orderly divestment
- Ongoing: Monitor for grade recovery
SFDR Classification Requirements
- Article 6: Basic sustainability risk integration
- Article 8: Promotes environmental/social characteristics (minimum screening required)
- Article 9: Sustainable investment objective (all holdings must meet sustainability criteria)
For SFDR-specific queries, use the regulatory-lookup skill for detailed regulation text.
Stopping Points
- After Step 2 (breach detection complete): present breaches for review before checking engagement history
- After Step 4 (remediation plan drafted): present for approval before finalising
Output
An ESG compliance report with breach table, engagement history context, and remediation timeline.
