Sep 20, 2021

Tech-driven ESG practices by nonfinancial firms and digital ratings and metrics agencies

Tech-driven ESG practices by nonfinancial firms and digital ratings and metrics agencies

The G20 Sustainable Finance Working Group (SFWG) selected FC4S as a Knowledge Partner to support its research on the role of digital solutions to improve sustainability disclosure and reporting and capture information for entities that might fall outside the scope of disclosure and reporting regulations. Thus, Financial Centres for Sustainability (FC4S) Network and the Green Digital Finance Alliance (GDFA) developed this paper to guide policymaker’s actions to support the adoption of new digital technologies for improved Environmental, Social and Governance (ESG) disclosure.

This paper includes a stock take of corporate-level practices of technology deployment to improve environmental risk disclosures, and of current practices of third party ESG metrics and rating providers for the financial sector. It also integrates financial centre-level perspectives and practices in a digital shift to ESG, from a specific survey to FC4S members. It finally concludes with a set of recommendations for policymakers actions to support the adoption of the new data sources for improved ESG disclosure.

Learn more about what the FC4S Network and the GDFA proposed here.

Download the infographic.