Environmental, social, and governance (ESG) criteria are becoming increasingly important for investors, who use the ratings thereof to evaluate these dimensions in investment decisions. However, the validity varies greatly depending on the provider. “Moreover, ratings do not exploit the full potential offered by raw ESG data,“ says Claudia Lanz-Carl, cofounder of valyt, a consultancy specializing in sustainability analysis and sustainability data that has analyzed ESG ratings and raw data in depth and is familiar with the associated challenges.
How to Manage ESG Data Efficiently and Individually
syracom and valyt provide an open, cost-effective, cloud-based approach for financial institutions that unites ESG data from different sources, with different formats, standardizations, and deployments, in a single well-organized database. The user can access relevant and high-quality data quickly and efficiently, and the desired information is presented in a targeted manner. As an automated solution, the database also relieves the user of numerous work steps such as validation, transformation, and normalization. The framework is flexible and new data sources can be integrated at any time, which can provide financial institutions with their own individual model for data analysis.
“Professional management of ESG data will become as important to companies as the management of financial data,” says Hendrik Kurz, Business Unit Manager Banking and member of syracom consulting AG’s executive board. “Our goal is to anchor the management of ESG data holistically and efficiently in the company. To achieve this, we use a tried-and-tested integrated solution approach that draws on experience from many implementation projects.”
valyt organizes, prepares, and analyzes financial and ESG data from a wide variety of sources for decision-making processes and stakeholder communication. Process automation is an important component here. The independent consultants support their customers with ESG data strategy development and implementation.