Quality Matters: Transforming ESG data for better decision-making
Dr. Jane Thostrup Jagd, Director Net Zero Finance and M.Sc. Sebastian Fischbach, Manager, Systems Transformation & Net Zero
Environmental, Social, and Governance (ESG) data is essential for strategic decision-making, yet persistent challenges in data quality, consistency, and accessibility hinder its effectiveness.
Our latest guidance analyses these systemic issues, identifying key obstacles for the ESG data users. We look at the root causes of ESG data challenges and offer actionable solutions to enhance reliability and usability.
The analysis identifies key issues stemming from three primary sources: companies, data providers, and structural factors. For each category, we describe the problem, highlight known upcoming remediation efforts, and propose further actions to address the challenges.
Our aim is to raise awareness of these issues and advocate for the establishment of remediation actions that ensure ESG data becomes both reliable for analysis and valid for decision-making. By addressing issues in ESG data quality and usability, and providing practical solutions, we aim to close gaps in reporting, enhance data quality and granularity, and ensure the integrity of the ESG data ecosystem.
We provide practical guidance for investors, banks, journalists, and auditors to navigate ESG data challenges. By fostering collaboration and accountability, we aim to close reporting gaps, enhance data integrity, and empower informed decision-making.