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Survey highlights ESG data challenges

Sustainable investmentsRecent Funds Euope research has shown a worryingly immature state of data management within the ESG world.

 The survey, run in partnership with Linedata, showed that ESG has become central to firms business development and increasingly popular with investors, firms are challenged by issues around data.  

Yet just over a quarter of surveyed firms (27%) use comprehensive ESG tracking and reporting for their funds, while more than half (55%) use minimal ESG reporting/tracking and almost one in five (18%) use none at all. 

The figures are all the more worrying because the majority of managers cited data-related issues as their biggest challenges around ESG investing. 

A lack of standards (51%), data availability (49%) and data inconsistency (41%) all featured highly in respondents’ list of concerns. 

European fund managers also face the challenge of complying with the EU’s Sustainable Financial Disclosure Regulation (SFDR) which was launched earlier this year. 

Fortunately the survey showed that the vast majority of firms (79%) plan to invest more heavily in their ESG infrastructure over the next 12 months, with 22% planning to do so significantly.

The survey can be accessed here 

© 2021 fundsTech

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