Executives Planning to Substantially Increase ESG Data Spend

ESG data demand is on the rise among portfolio managers, with the vast majority planning to substantially increase spending on the resource, according to a Bloomberg survey.

The financial data giant’s ESG Data Acquisition and Management Survey of more than 100 managers and executives found that 92 per cent would boost spending on ESG data by more than 10 per cent and almost a fifth would increase it by 50 per cent.

The survey found, however, that around half of respondents said that contending with new ESG content and managing multiple data feeds was a challenge.

Europe Adopts Reporting Standards for CSRD Disclosures

The European Commission has given assent to its own set of guidelines for the estimated 50,000 companies that will be required to report their ESG performance data under the Corporate Sustainable Reporting Directive (CSRD). The European Sustainability Reporting Directive considers frameworks established by the International Sustainability Standards Board and GRI and will be applicable when companies first report under CSRD in 2025.

Auditing Body Releases ESG Data Assurance Proposal

The global auditing standards setter, the International Auditing and Assurance Standards Board (IAASB), has released its proposals for ISSA 5000, which will cover the validation of ESG data. As the IAASB explained to ESG Insight last week, the standard – if adopted – is hoped to harmonise the way ESG data is verified by auditors.

ISS ESG to Update Cyber Risk Score Model

ISS ESG is to tweak the model behind its recently launched Cyber Risk Score to make it easier to identify “good” and “bad” scores.

“The ability for this model to differentiate ‘goods’ from ‘bads’ by discerning forward-looking risk, is a key differentiator in the market,” the company said. The new version, 5.0, also updates its Incident Type Likelihood ranking of potential cyber breaches.

Many companies are including cybersecurity within their ESG processes because they recognise that protection of personal and corporate data falls within the social and governance pillars.

The sustainable investment arm of Institutional Shareholder Services, which launched the service earlier this year, said the enhancements would be rolled out by the end of July.

GLEIF Signals Intent to Join Global Project Designed to Digitise ESG Credentials of MSMEs

The Global Legal Entity Identifier Foundation (GLEIF), United Nations Development Programme (UNDP), and Monetary Authority of Singapore (MAS) have signed a statement of intent to embark on a collaborative initiative to develop digital Environmental, Social and Governance (ESG) credentials for micro, small and medium-sized enterprises (MSMEs) worldwide.

The initiative, Project Savannah, hopes to lower the barriers to ESG reporting for MSMEs by establishing a common framework of ESG metrics to generate basic sustainability credentials and commence the journey towards meeting UN Sustainable Development Goals (SDGs). It will use digital initiatives, such as MAS’s Project Greenprint1, to generate ESG data credentials that can be housed in MSMEs’ LEI records. MSMEs will then be able to transmit verified entity information and key ESG data to their business partners.

Sphera Launches Cloud-Based AI Climate Risk Tool

Investor clients of ESG risk management software provider Sphera can access the company’s new SpheraCloud Corporate Sustainability-Portfolio Management service. The product offers financed emissions and portfolio emissions data, using AI.

Finastra Unveils Bank Climate Sandbox with Green RWA

FinTech Finastra has partnered with Green RWA to create a tool that enables banks manage climate risks, including those facing their assets. The Climate-Extended Risk Model (CERM) Sandbox calculates physical and transition risks to its portfolio and loan book as well as its own operations.

JPMorgan Launches Platform to Make ESG Data Easier to Use

JPMorgan Securities Service has unveiled a sustainability data interrogation and integration tool for clients. The Sustainable Investment Data Solution, available through the bank’s cloud-based Fusion platform, is designed to make it easier for clients to use ESG data, which is provided by multiple vendors, including Bloomberg and Sustainalytics.

ESG Risk Tool to be Reviewed by ISS ESG

ISS ESG is to adjust the methodology and data underlying its Environmental & Social Disclosure QualityScore product. The environmental and social risk assessment tool will undergo changes by the third quarter in response to changed disclosure standards. The Maryland-based sustainable investment arm of Institutional Shareholder Services said more than 150 factors underlying the score would be reviewed, with 60 new additions and 50 retired.

Bloomberg Offers Full Funds Data Suite, Including ESG

Bloomberg has included ESG information in a major new product that provides transparency into almost 150,000 funds and exchange traded products. The Funds Data Solution also offers foundational, holdings, corporate actions, risk and regulatory data.