ESG data strategy: Emerging initiatives and lessons learned from the leading institutions

25/05/2023 Article
profile picture of Peter Plochan

Peter Plochan


Senior Community Advisor

Addressing ESG & sustainability objectives and building a sustainable financial system requires a solid ESG information architecture based on high-quality, reliable and comparable data.

However, the lack, transparency and costs of ESG data can be significant challenges preventing firms and banks from properly performing their sustainability, ESG and climate related activities. Some data just does not exist yet, some is difficult to trust and some is just too difficult to get. And these challenges are often rather segment specific; whereas corporate sector data is becoming more common thanks to the upcoming ESG disclosures, the data for SME and retail segments are more problematic. 

Nevertheless, the disclosure requirements and regulators are pushing banks to move ahead despite this lack of data, and thus banks often have to rely on imputing the missing information using proxies expert, judgements and models, and thus make decisions based on incomplete data.

“While there are risks to acting on the basis of partial climate risk data, the risks of inaction are greater,” saidFrank Elderson, Vice Chair of the Supervisory Board of European Central Bank

Want to keep reading?

Become a Qorus member to get access to all our insights

Related news & insights

24/05/2024 Video

Innovative climate action: ImaginPlanet's focus on biodiversity and water preservation

Teresa Buxeda is the Project Manager of ImaginPlanet, shares imagin's biodiversity protection success story of imagin's coral restoration project.

24/05/2024 News

ImaginPlanet's commitment to sustainability: A milestone achievement in 2023

imagin successfully removed 100 tonnes of plastic from the oceans, marking a substantial milestone in its environmental efforts.

SME Banking
20/05/2024 News

CBA enhances sustainability tool for small businesses with new partnerships

Commonwealth Bank of Australia (CBA) has upgraded its Sustainability Action Tool by partnering with BioPak and EnergyFlex to help small...

20/05/2024 News

AXA and the Universal Postal Union (UPU) join forces to advance inclusive insurance through postal networks

This collaboration aims to use the extensive reach and trust of postal services to offer financial protection to underserved populations.

19/05/2024 News

Sun Life launches innovative insurance solution for Canadians living with diabetes

This industry-first offering provides a higher chance of approval, affordable premiums, and personalized care to empower individuals with diabetes.

18/05/2024 News

P&N Bank prioritizes inclusive experiences in new branches

Recognizing that 4.4 million Australians live with disabilities and many identify as neurodiverse, P&N Bank collaborated with community consultants with...

13/05/2024 News

MicroBank's microcredits lead to creation of over 28,000 jobs in Spain

MicroBank, the social bank of CaixaBank, has significantly contributed to job creation in Spain, directly creating 28,521 jobs in 2023...

12/05/2024 News

Allianz Trade and Inclusive Brains develop AI-powered assistive technology

This innovative technology utilizes Artificial Intelligence (AI) and neurotechnologies to empower people with disabilities by allowing them to control workstations,...