ESG Data

Overview

ESG data is the basic unit of entity information disclosure and the basic element of ESG investment. The scope and quality of ESG data are related to all stakeholders. Regulatory agencies have regarded the collection, aggregation, analysis, and disclosure of ESG data as important working issues.

ESG data providers include traditional financial institutions, as well as exchanges that provide ESG data integration.

ESG Data Development

The importance of ESG data has been recognized by participants, but there are many problems in the current development of ESG data, such as inadequate data collection, analysis, and disclosure methods, and the impact of greenwashing on the credibility of ESG data.

The driving force for the development of ESG data is artificial intelligence and big data technology. Some data suppliers have already started applying these technologies to their business processes.

ESG Data Regulations

ESG data has been incorporated into policy-making by various jurisdictions, with the ESG ratings and data product codes of conduct issued by the International Capital Market Association being the primary reference standards for these regulatory agencies in formulating policies.

In existing ESG data regulations, most still adopt the principle of voluntary principles in order to reduce the cost burden for data providers. As the ESG industry develops, these voluntary principles may transition towards mandatory principles in the future.