Lack of data is constantly ranked as number 1 issue preventing firms and banks to properly perform their Sustainability & ESG & Climate related activities. Nevertheless 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 and models and thus make decisions based on incomplete data.
At the same time banks have to incorporate all this new data into their existing credit & customer data warehouses and adjust their customer related processes such loan origination & monitoring accordingly. We also see number of innovative ESG Data initiatives emerging that could potentially resolve number of issues around the missing ESG data, these include for example initiatives like industry data pooling by banks, usage of satellite data or automatic processing of customer sustainability disclosures.
What are the main ESG data aspects & lessons learned for banks to think about during second half 2023?
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