{"id":1115,"date":"2021-06-16T13:40:00","date_gmt":"2021-06-16T13:40:00","guid":{"rendered":"https:\/\/digiterrebestg.wpengine.com\/?p=1115"},"modified":"2024-05-29T15:41:19","modified_gmt":"2024-05-29T15:41:19","slug":"guest-blog-data-is-at-the-heart-of-esgs-mission","status":"publish","type":"post","link":"https:\/\/www.digiterre.com\/us\/2021\/06\/16\/guest-blog-data-is-at-the-heart-of-esgs-mission\/","title":{"rendered":"Guest Blog: Data is at the heart of ESG’s mission"},"content":{"rendered":"
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Guest Blog: Data is at the heart of ESG’s mission<\/h1>\n\n

CEO\/Founder, Ian Murrin, was recently featured in financial IT magazine where he discussed the challenges to adopting an effective ESG strategy.<\/p>\n \n <\/div>\n<\/section>\n\n\n

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ESG has gone mainstream but the journey to adoption is full of complex and difficult challenges.  At the heart of the mission is technology and data.<\/p>\n\n\n\n

Data management for ESG is a newly emerging and dynamic area.\u00a0Both buy-side and sell-side financial institutions cite data as one of the most intractable problems they face in implementing ESG.<\/p>\n\n\n\n

According to a recent BlackRock survey of 425 investors, representing $25tn in assets under management, data and analytics was the greatest obstacle to ESG implementation.\u00a0 Similarly, a survey by Procensus, which analyzed data from 50-70 institutional investors, representing $10-15tn in assets under management, found that the biggest challenges in existing ESG research were poor data disclosure by companies, inconsistent scores and ratings by third party providers, and lack of quantification of ESG considerations in financial modelling.<\/p>\n\n\n\n

Financial institutions recognize that the lack of high-quality data management can impede the adoption of ESG.\u00a0 So what can be done to get data management right?<\/p>\n\n\n\n

Luckily, there are some pragmatic solutions, combining agile software techniques<\/a><\/u> and data maturity approaches<\/a><\/u>, that can help advance ESG data issues.<\/p>\n\n\n\n

Industry and regulatory efforts to achieve harmonization of\u00a0ESG typologies and definitions are progressing.\u00a0 But financial businesses cannot wait, and are pressing on with their ESG adoption.\u00a0 They need to select ESG data sources and then develop analytics and models in support of implementation.\u00a0 However, significant data-related challenges can arise from a lack of advanced data transformation solutions.\u00a0 Pain points typically relate to data silos, volume, value, fidelity or timeliness.<\/p>\n\n\n\n

Data management for ESG requires the implementation of a strong data foundation and common language across data capture, curation, consumption and governance.  Otherwise, ESG data cannot easily be integrated into workflows or readily consumed by users.  This approach can help solve the problem of poor data fidelity and composition, ensure data is presented to users in a simple, user-friendly way and build effective data screening and management functionalities.<\/p>\n\n\n\n

Crucial to success is an approach built on an Agile methodology, across architecture, user-interface development, server-side development, and quality assurance.  Combined with a strong domain knowledge in financial services, and effective knowledge sharing with development partners, this approach can be applied to prepare and perform ESG data load and transformation, ESG client preference capture, and ESG portfolio modelling and reporting.  It enables technology teams to work effectively with business stakeholders to build ESG functionality in a timely, pragmatic way.<\/p>\n\n\n\n

Advanced technology is a key enabler of ESG implementation. It allows finance players to develop business propositions in response to market demand, open up new opportunities and accelerate business development.  Without it, the financial sector \u2013 and the wider economy it serves \u2013 may fail to realise the potential of ESG.<\/p>\n<\/div>\n<\/div>\n\n\n\n

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About the Author<\/h3>\n
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Digiterre<\/h4>\n\n \n \n <\/div> \n <\/div>\n
\n Date: 16\/06\/21<\/strong><\/span>\n Category: News and Events\/ People Blog<\/strong><\/span>\n <\/div>\n <\/div>\n<\/section>\n\n\n
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