Investors and BoD require that green investments are properly reported, the reporting is complete and accurate, and there is consistency of disclosures. However, most FSIs do not have a formal reporting process in place to collect, accumulate, and disclose it.
Goals and Objectives
Establish generally accepted reporting standards.
Determine the need for assurance of the data disclosed.
Determine the role and capabilities of the BoD to properly engage in the reporting creation and interpretation.
Data analytics, artificial intelligence, client reporting, independent SME input, and ESG scoring
Use Case Summary
FSIs should demand that both quantitative and qualitative ESG risks and disclosures have the same quality as financial data. They should institute a formal reporting process to collect, accumulate, and disclose it. Too often, FSIs disclose nonfinancial metrics that are not fully substantiated with supporting information or the metrics may have material errors.