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Inspiration

Loan agreements increasingly include ESG covenants, but in practice these obligations are still tracked manually using spreadsheets, emails, and static documents. This creates delays, errors, and limited transparency for lenders, borrowers, and regulators.

We were inspired by how fragmented ESG covenant management still is across the loan lifecycle, despite growing regulatory and investor pressure. The goal of ConvenantLedger is to transform ESG covenants from static text into live, auditable compliance data that can be monitored continuously.


What ConvenantLedger Does

ConvenantLedger is an ESG loan compliance platform that digitizes ESG covenants, tracks performance against contractual targets, detects breaches in real time, and generates regulator-ready reports.

The platform supports:

  • Bulk ingestion of ESG covenants from loan or ESG annex documents
  • Bulk submission of ESG performance data
  • Automated evaluation of reported values against covenant thresholds
  • Real-time compliance analytics and breach visibility
  • Exportable PDF reports for audit and regulatory review

How We Built It

The system is built as a web-based application using FastAPI and a relational data model to represent loans, ESG clauses, and ESG submissions.

For document ingestion, we implemented a rule-based parsing approach to extract structured ESG covenants and performance data from uploaded PDF documents. This approach reflects how ESG annexes are often standardized in practice and allows safe, explainable extraction without relying on opaque AI models.

Each ESG submission is evaluated automatically against its corresponding covenant, and the compliance status (GREEN, AMBER, or RED) is recorded along with an immutable audit hash. These results power the live dashboard, analytics, and reporting features.


Challenges We Faced

One of the main challenges was balancing realism with hackathon constraints. Fully automated legal document understanding is complex and risky, so we focused on a deterministic, production-credible ingestion approach that mirrors how financial institutions standardize ESG disclosures today.

Another challenge was ensuring that analytics and reports were based on real evaluated data rather than static or simulated visuals. All charts, alerts, and exports in ConvenantLedger are generated directly from live submissions.


What We Learned

Through building ConvenantLedger, we learned how critical explainability, auditability, and workflow design are in regulated financial environments. Even simple automation, when designed correctly, can significantly improve transparency and operational efficiency in ESG lending.

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