Reuters Sustainable Finance & Reporting Europe

The financial system should help deliver climate and social goals, but market failures and inefficiencies prevent finance from being directed where it will make the most positive impact. Investors are increasingly utilizing ESG data to inform investment decisions, but a lack of standardization, poor communication with corporations and a lack of comparable data is leading to confusion and limiting the progress towards a low-carbon, just economy.

However, change is afoot. The European Commission’s update to the NFRD, The Corporate Sustainability Reporting Directive, and the movement towards a global reporting standard promises a move towards standardization, a common language and a solution to a problem which has constrained the industry for decade.