Reliable Data for Sustainable Finance: Fixing the Information Supply Chain

Sustainable finance is developing its own regulatory framework, which displays a high level of complexity and compliance costs. The bulk of this framework relies on information to pursue its objectives. Only reliable information can lead to reliable ESG disclosure at all levels – including issuers (corporate reporting, green bonds), market participants (fund managers and investment advisers), rating agencies and benchmark administrators. However, sustainability-related information displays unique reliability problems that make the foundations of the whole regulatory architecture shaky