But finance firms are not alone in their demand for a greater volume and reliability of information to inform decision making
The pressure on asset managers and other parts of the financial services sector to address sustainability continues to be hampered by a lack of data.
The information available to decision makers is less abundant and reliable than it needs to be according to a new survey from Canada’s Institute for Sustainable Finance.
It found that across respondents from finance, academia, NGOs and the public sector, there is frustration that data is lacking what is required to make accurate investing decisions and for holding firms accountable for their greenhouse gas emissions.
More than 4 in 10 respondents said they need additional data with just 6% saying that they are very satisfied with the availability of sustainability data.
Data issues
Data is too often missing, incomplete, or contains errors. Accessing and using data is also identified as an issue by survey respondents.
These issues often contribute to allegations of greenwashing.
“The State of Corporate Sustainability Data in Canada — Survey Results” was written by ISF Research Director Ryan Riordan and Research Associate Will Hamilton.
Dr Riordan explained that, with emissions data often omitted or wrong, analysts are unable to accurately assess whether firms are reducing their emissions.
Additionally, the method of reporting is frequently changed, leading to further erosion of transparency.
“Pressure on these firms will be greatly increased with proper data standards in place,” he said. “Consistent and sound data collection must be developed, standards established, and key statistics or indicators identified in order to properly assess the progress of firms.”
Our survey of investors, finance experts and officials finds that sustainability data isn't meeting the demands of the market, with major implications for capital allocation decisions towards sustainable investments. @algoriordan and Will Hamilton report: https://t.co/ALVrrIvSEP pic.twitter.com/LS9FPtx24j
— Institute for Sustainable Finance (@isfcanada) June 2, 2022
