Sustainability data

Sustainability data: turning the tide allianzgi.com March 2023 1 A strong proprietary ESG data architecture is the cornerstone in understanding and aligning sustainable outcomes alongside financial returns. The challenge is to turn the mass of available sustainability data into insights that make an actionable difference. Recent years have witnessed significant growth and change around the topic of Key takeaways Thomas Roulland environmental, social and governance (ESG) – Integrating non-financial factors into Head of investing within the asset management investment decisions is increasingly Sustainability industry. Rising investor interest has combined Methodologies and mainstream, but the choice and style Analytics with evolving regulatory perspectives on of integration is still evolving. ESG integration and a forced rethink of – We think a dedicated ESG data sustainability investing in the wake of the strategy is critical for global asset pandemic and geopolitical shocks. But the managers to meet current and future industry has yet to address the best way to data, portfolio scoping and reporting handle the availability and application of needs. sustainability data. – Our dedicated Sustainability Without a dedicated and thoughtful approach Methodologies and Analytics team to ESG data management, we think asset strategically addresses the challenges managers risk being overwhelmed. At Allianz of data selection, aggregation and Global Investors, we have a team dedicated to implementation across public and guiding investors through the current deluge of private asset classes. sustainability data including scores, ratings, key – Our new Sustainability Insights performance indicators (KPIs) and controversies Engine – or SusIE – is a proprietary – now that effective ESG data management data tool to enhance understanding has become a strategic necessity. of ESG data. Everything everywhere all at once The growth in ESG disclosures in recent social responsibility (CSR) reporting through decades has been dramatic and now reached frameworks provided by industry bodies like a point where most of the world’s largest the Carbon Disclosure Project2, the Global companies report on sustainability (see Chart Reporting Initiative3 or the Sustainability 1). This shift has been driven primarily by two Accounting Standards Board.4 These factors: investor interest and regulation. organisations have promoted and provided Companies have been able to address guidance on the most material ESG topics for investor interest in sustainability or corporate public disclosure by corporations. Value. Shared.