The ESG Data Deluge: Sink or Swim for Companies and Investors

When it comes to ESG reporting and sustainability strategy, it’s clear that companies are stepping up their game – and just in time, as there is an avalanche of disclosure requirements coming their way. It’s coming for investors too, who may find that an energized base of issuers knows a thing or two about ESG data reporting.

SFDR Draft Principle Adverse Impacts Indicators: Company-Level Data Availability

Institutional investors may need to report on an array of new ESG metrics for their companies if the European Union’s Sustainable Finance Disclosure Regulation (SFDR) is finalized in its current form. Even though the rules may be finalized as soon as March 2021, most companies are underprepared for this possibility.. The table below lists the 32 primary adverse indicators that would be required in the current form of the law, together with MSCI ESG Research’s assessment of data availability for constituents of the MSCI ACWI IMI.

Source: MSCI ESG Research. Data for constituents of MSCI ACWI IMI as of Nov. 12, 2020.

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