PRI moves on reporting, data

One response to “PRI moves on reporting, data”

1. 

   Kevin Bourne

   August 3, 2017

   It is good that the PRI are lending their support to TCFD project. However, data disclosure is only really effective if combined with data discipline. Each individual data attribute needs a date / time stamp to be created for effective and meaningful analysis to be undertaken. Without this key component, it will remain an uphill battle to convince investors of the efficacy of the ESG/Climate data models. Whilst there is a strong desire for ESG data to be correct in its signals value, it will continue to be challenged without such discipline being evidenced. This is before there has even been a detailed debate of the true value of the signal & its actual correlation to performance and/or risk. Unless published data is audited this is unlikely to be forthcoming except for a relatively small group of public companies who understand the needs of investors. It would be helpful for the PRI to initiate the data discipline debate with the quant teams at their client members. They may well be surprised at how simple it is to vastly improve the value of the data they wish companies to disclose.

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