A practical guide to creating an ESG Data Hub strategy, focusing on sustainability data management. The paper presents the regulatory environment and common perspectives on sustainability, highlighting key compliance differences between the UK US on the one hand and the EU on the other. Particular emphasis is given to the ability to actively govern information assets in the ESG perimeter and to know how to navigate, integrate, enrich and control data from the multiple sources involved. The paper also provides a set of practical guidelines, highlighting key elements to consider for effective ESG Data Governance.

Indeed, the topic of environmental, social and corporate governance (ESG) has become a hot topic in recent years. It is no longer a nice to have, but an indispensable requirement for many organizations, a considerable change even for companies that have voluntarily provided ESG information in the past but are now required to do so in many countries. It is estimated that more than 50,000 companies are involved within the European Union alone, often of significant size and public interest. A changed and new awareness has led to the realization that traditional financial reporting is not equipped to properly intercept and value the consumption of resources that underlie the performance mapped in corporate financial statements.

Market analysts are also making ESG architecture a routine for their portfolios (ETFs, funds, stocks, bonds) and are increasingly using ESG as a risk management tool. Companies are being evaluated based on their impact on the environment, social trust in their ability to properly manage relationships toward different stakeholders, governance structures, and valuing diversity. In short, balance sheet performance is no longer sufficient for success, and there are direct correlations between price per share and ESG score.