A summary of the main challenges with climate-related data faced by FMPs, according to Eurosif's report

Key takeaways

Eurosif - The European Sustainable Investment Forum has recently published the report "Climate-related Data: The Investors' Perspective" which includes the results of a survey about the use of climate-related data in investment processes.

The quantitative and qualitative interviews were conducted in 2022. In total 33 asset managers and owners participated. The assets owned or under management ranges from less than €50 million to more than €500 billion. 

Datia’s team summarized some of the most interesting findings of the report:

  1. All of the asset managers and owners interviewed by Eurosif rely on external data providers to acquire data from investee companies.
  2. Most interviewees believe that better corporate reporting of climate-related data in the future will not reduce their reliance on external data providers, because these entities will continue to play an important role by sourcing data from companies’ reports and producing ‘off-the-shelf’ analytics and data sets for investors
  3. Climate change is likely to be one of the most standardized ESG investment topics. Yet, asset managers and owners operating in Europe still face various challenges
  4. The two most common challenges when it comes to working with data providers are insufficient coverage and high costs (see the table below) 
  5. +70% of the FMPs interviewed would appreciate regulatory measures that would introduce transparency requirements on the sources of data and proportion of estimates and publicly available data (see the table below) 

Challenges faced by asset managers and owners when using climate-related information from external providers (source: Eurosif Report on Climate-related Data, Figure 7)

Preferred regulatory measures to improve the reliability and quality of external providers’ data, analytical tools & research products focusing on climate (source: Eurosif Report on Climate-related Data, Figure 18)

How Datia can help

Datia’s platform has a layer of data transparency, with information such as data origin (whether the data is publicly available or estimated), and the coverage behind each calculated Principal Adverse Impact (PAI) indicator. Datia's data transparency methodology is explained in detail in the article "How data transparency can increase trust on asset managers' sustainable finance work".

Our team is proud of enabling asset managers and owners of any size to tackle sustainable finance. The total AUM is an important factor considered in our pricing model. Read our Frequently Asked Questions for more details about our subscriptions. 

We are happy to conduct a coverage check of your portfolio within a few hours. Reach out to our team to request a coverage check of your funds.