Affiliation:
1. School of Computing and Information Systems, Singapore Management University, Singapore 178903, Singapore
2. Saquish Partners, Singapore 276697, Singapore
Abstract
Regulations related to the disclosure of environmental, governance, and social (ESG) factors are evolving rapidly and are a major concern for financial compliance worldwide. Information technology has the potential to reduce the effort and cost of ESG disclosure compliance. However, comprehensive and accurate ESG data are necessary for disclosures. Currently, the availability and quality of underlying data for ESG disclosures vary widely and are often deficient. The process involved with obtaining ESG data is also often inefficient and prone to error. This paper compares the models used and the evolution of Fintech data infrastructure developed to support financial services with the requirements and trajectory of ESG disclosure compliance. Based on existing Fintech models, it presents a sustainability data infrastructure framework that aims to address current ESG data challenges, including data governance concerns, on a large scale. In conclusion, it highlights key considerations and recommendations for policymakers.
Subject
Finance,Economics and Econometrics,Accounting,Business, Management and Accounting (miscellaneous)
Reference53 articles.
1. Alonso, Andrés, and Marqués, J. Manuel (2019). Financial Innovation for a Sustainable Economy, Bank of Spain. Occasional Paper No. 1916.
2. Australian Securities & Investments Commission (2013). ASIC Derivative Transaction Rules (Reporting).
3. Australian Securities & Investments Commission (2023). ASIC Commences Greenwashing Case against Vanguard Investments Australia. Media Release (23-196MR), 25 July 2023.
4. Australian Sustainable Finance Initiative (2020). Australian Sustainable Finance Roadmap, ASFI.
5. Carbon Disclosure Project (2023, June 20). Available online: https://www.cdp.net/.