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Hills Sustainability
THEME: SUSTAINABILITY
12 October 2020 Research Reports

The Operating Model to Enable Sustainable Investing

Improving ESG Data Quality, Frameworks, & Measurement Tools

  1. Rebecca Fender, CFA
  2. Robert Stammers, CFA
  3. Roger Urwin, FSIP
  4. Rhodri G. Preece, CFA

In this excerpt from the Future of Sustainability in Investment Management report, explore how investment organizations manage data, technology, systems, and tools to enable sustainable investing practice.

In the operating model, we consider data, technology, systems, and tools.

Environmental, social, and governance (ESG) data were a minor part of all investment data 5–10 years ago and now are a very significant data source when looking across all data use at investment organizations. We note a long list of improvements that investors seek from their data and technology.

The operating model challenges in deploying sustainability capabilities can be split into problems with data quality and challenges related to organizational structure, culture, and focus in managing and using data.