The Wall Street Journal has outlined the challenges being posed to chief financial officers, as investment and fund managers continue to take a closer – and more real-time – look at corporates’ ESG data.

 

In recent years index providers have taken on an active role in driving governance, transparency, and standardization around this data, which can still vary widely across sectors and jurisdictions.

Said the Journal:

“Asset-managers need frequent data updates from companies to inform real-time investment decisions, said Rick Redding, chief executive officer of the Index Industry Association representing index providers. Lenders are also taking a closer look at sustainability metrics when they provide loans to companies or underwrite their bonds.

As a result, companies across sectors are disclosing more insights into their ESG performance than ever before, according to The Wall Street Journal’s latest sustainability ranking for the quarter ended Dec. 31. At the end of last year, the number of businesses meeting the Journal’s minimum disclosure requirements last year jumped to 5,379 companies, up 23% since 2017.

Read the full article here: https://www.wsj.com/articles/providing-timely-esg-information-is-becoming-more-crucial-for-cfos-11612866601