// INFOGRAPHIC //
NON-FINANCE DATA SETS INCREASINGLY SIT AT THE HEART OF INVESTMENT
with over 70 % of decisions impacted by ESG factors
Douglas Laney , Innovation Fellow , West Monroe
“
DATA IS UNDOUBTEDLY THE LIFEBLOOD OF BUSINESS AND PUBLICLY AVAILABLE WEB-BASED
DATA IS BEING COLLECTED
TO GENERATE INSIGHTS
SURROUNDING ESG
PERFORMANCE .
ESEARCH , CARRIED OUT
R by research provider , Vanson Bourne , highlighted US survey respondents from within the finance , banking and insurance sectors who said that just over three-quarters ( 76 %) of their organisation ’ s investment decisions are impacted by ESG factors , whereas for UK respondents it ’ s 67 %.
Traditionally , the finance sector has relied heavily on pure financial data sets , but research has shown the increase in awareness around ESG considerations . This is powered by ESG data sets , a form of alternative / external data , and includes measurable metrics from areas such as energy use , emissions , harassment and discrimination lawsuits , board diversity , social involvement or involvement in worthy causes .
The findings ranked the most pressing ESG considerations and found environmental practices ( 69 %), organisational diversity ( 64 %), and corporate governance ( 64 %) as the most important considerations for 100 CDOs ( chief data scientists ), CTOs , heads of data , CIOs and those who report to them . In addition to impacting investment decisions , ESG performance was also reviewed for business partnerships , with 95 % of survey respondents in the US and UK saying that their respective organisations take the ESG performance of its suppliers / vendors into account .
Data is undoubtedly the lifeblood of business and publicly available web-based data is being collected to generate insights surrounding ESG performance . The use of data is a key takeaway from the research as 100 % of interviewed respondents from data departments stated that their organisations incorporate ESG data into all or some business strategy decisions .
Further key findings from the survey include :
• 88 % of survey respondents stated that they are part of organisations where measuring and reporting on ESG performance is either a key metric or of moderate importance to their business
• 66 % of survey respondents who are at the most senior level of their organisations stated that ESG is a key metric in their organisations , compared to just 40 % of departmental and intermediate management
• 80 % of survey respondents who are at the most senior level of their organisations stated that ESG is incorporated into all business strategy decisions , compared to 30 % of departmental and intermediate management
• Despite likely having fewer resources , 73 % of survey respondents from organisations
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