As the financial sector becomes more aware of the need to transition to net zero, forward-looking data are becoming more important.
THE sustainable investment agenda continues to develop from the initial stages of awareness and recognition to strategy, execution and measurement of results. With this, the challenges around data infrastructure are becoming more apparent to the financial ecosystem, from regulators and policy-makers to financial institutions and corporates.
As more emphasis is put on the financial sector to implement net-zero targets, and companies are progressively being encouraged by market participants to provide projected information, the significance of forward-looking data cannot be underestimated. To move towards green financing, institutions must move beyond historical reporting to implement targets, disclosure requirements and portfolio transition.
This report explores issues around credibility and measurement, and investigates how forward-looking data uses and challenges differ across sectors and asset classes. It also looks at the future of regulating disclosures and reporting in relation to forward-looking data, as well as the technological developments that could enable better data collection, measurement and modelling.