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The LSFI is pleased to release the outcome of the analysis conducted by its working group on ESG Data related challenges. The working group, composed of 13 experts from financial institutions, consulting firms, data providers and financial associations, sought to clarify the current challenges associated with ESG Data and provide recommendations for overcoming these difficulties.

In particular, the working group focused on examining the challenges associated to the raw ESG data used by financial institutions in the context of investment/lending or commercial decisions, risk assessment, ESG performance assessment, and investors and regulators’ reporting. The members also identified a series of best practices and recommendations to address these challenges for each asset class. Finally, the working group has also elaborated a questionnaire to be used by financial professionals when dealing with data providers.

The Outcome Report includes:

  • Objectives, timeline and methodology of the LSFI ESG Data working group.
  • Challenges identified, including key issues such as data reliability, lack of global standards, transparency, cost, and regulatory complexity.
  • Recommendations for financial professionals to overcome the identified challenges by asset class: Private Assest, Listed, Debt and Indirect Investment.
  • Questionnaire to support financial professionals when dealing with data providers.
  • Recommendations for policymakers.
  • Recommendations for the LSFI.

Access the LSFI ESG Data Working Group Outcome Report Access the extract Recommendations for Financial Professionals Access the extract Questions for Data Providers