Financial institutions must invest in understanding ESG data better, not just having more of it

ESG and sustainability data are moving in the direction of more mandatory disclosuresRegulators want more consistent ESG data, but that won’t guarantee it is more usefulInvesting in capacity to understand the nuances behind different ESG data and the context in which they are reported and used is critical to making more ESG data translate into better outcomes

The future of sustainability reporting and disclosure is evolving rapidly, but regulators see it transitioning from voluntary to mandatory and expanding in scope, beginning with climate-related topics. The International Organization of Securities Commissions (IOSCO) has released a summary of two roundtables held by a Sustainable Finance Task Force with a few key conclusions that reflect the perspectives of regulators...