As you are aware, data lies at the heart of the revolution in climate reporting and ESG investing, and is, in many ways, its Achilles’ heel. Investee companies can still use a variety of different approaches to how they report ESG data, and what data they report, although the new ISSB standards will improve this situation when they come into effect. Asset managers are subject to a variety of different ESG regulatory reporting regimes and taxonomies across the world, despite recent efforts at harmonisation. Sourcing accurate and consistent highly quality ESG data is a major problem, as the market for its supply is very fragmented and wide ranging in terms of quality. Then there is the challenge of managing and integrating ESG data from diverse sources into a coherent system. And, of course, the metrics and methodologies used by rating agencies are far from consistent, not to mention the potential inconsistencies between the ‘E’, ‘S’ and ‘G’ of ESG, and the weighting to be given to each element. The ESG data challenge is a serious issue for all companies and financial institutions.
City & Financial Global’s Summit on the 12 of June will gather some of the most senior leaders and experts of this field to share their knowledge, experience and expertise on best practice approaches to addressing the ESG data challenges.
Key themes to be discussed
- The criticality of sound data in the FCA’s Climate and ESG strategy for the financial services industry
- Case study in global cooperation: the development of the Net-Zero Data Public Utility
- ESG developments in the U.S.
- Impact of ESG data challenges on the EU’s SFDR, CSRD and other regulations
- Towards international cooperation on harmonising ESG data requirements and taxonomies
- A Voluntary Code of Conduct for ESG data and rating providers
- ESG data quality and consistency: meeting the requirements of the ISSB standards
- The role of auditors in providing assurance services
- Progress towards standardisation of data, methodologies and metrics among rating agencies and data providers
- Implementing an ESG data management system to meet different use case requirements, including compliance (regulatory reporting), risk management, product development and transition planning
- Finding accurate data for the ‘S’ and ‘G’ of ESG, including on diversity, culture, purpose and governance
- Top ESG data challenges: asset managers and companies discuss the issues that they currently find most challenging