ESG Strategist - CSRD will not bring “relevant, comparable and reliable” ESG data
Financial markets, as capital provider, will play a key role in the path to net zero, as investment needs are significant
To deploy this capital, relevant, complete, comparable and reliable ESG data disclosures are necessary for investors to properly asses risk and challenges of the companies they invest in (and their impact on the environment as well)
However, currently, ESG data disclosures are far from complete, especially related to scope 3 emissions…
…while comparability is weak, given that companies can use different reporting methodologies
…and finally the lack of external verification brings into question the reliability of this data
These issues are unlikely to be solved by the CSRD, which demands close monitoring of the first data sets that will become available in 2025
Hence, the upcoming ESG disclosure regulations might fail to fully achieve its goal to efficiently deploy capital towards sustainable investments
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