While regulatory compliance ranks as the top environmental, social and governance (ESG) priority for industry professionals, in Bloomberg’s latest ESG data trends survey nearly two-thirds of respondents identify data coverage and quality as the main challenge in Europe. Photo: Shutterstock

While regulatory compliance ranks as the top environmental, social and governance (ESG) priority for industry professionals, in Bloomberg’s latest ESG data trends survey nearly two-thirds of respondents identify data coverage and quality as the main challenge in Europe. Photo: Shutterstock

Europe faces pressing ESG data challenges, from data quality and regulatory compliance to constantly evolving content and a focus on climate risk, Bloomberg’s 2024 survey finds, underscoring the need for improved management, reporting and standards.

35% of survey respondents said that compliance with regulatory requirements was their foremost ESG data concern in a poll fielded by a leading news and data firm, reflecting the increasing pressure on companies to align with evolving sustainability and corporate responsibility standards.

Bloomberg’s recent report highlights significant challenges faced by European companies as they attempt to integrate environmental, social and governance considerations into their daily operations and investment strategies.  

Furthermore, 18% of respondents prioritised climate risk and net-zero solutions, underscoring a heightened focus on climate change and carbon neutrality within the corporate world. Other key areas include delivering returns and impact investing, attracting attention from 17% and 14% of participants, respectively.

The survey identified data coverage and quality as the principal challenge for 63% of those surveyed, pointing to significant barriers in achieving reliable and comprehensive ESG data critical for making informed decisions and assessing risks. Challenges also arise from integrating ESG data with alternative datasets and handling specifics related to biodiversity and the EU Taxonomy, highlighting the intricate nature of managing ESG data.

Managing constantly evolving and new ESG data emerged as the biggest issue for European firms, mentioned by 41% of respondents, with another quarter struggling to integrate ESG data with existing data structures, indicating the need for firms to remain adaptable to the rapidly changing ESG landscape.

Regarding ESG data management practices, 38% of firms use a centralised proprietary solution, while 32% delegate management to individual business units. Yet, 20% are still developing their ESG data strategy, revealing ongoing uncertainty or a transitional phase towards more organised ESG data management strategies.

These findings, released on 29 February 2024, stem from a survey of over 200 participants conducted by Bloomberg between September and November 2023, during its ESG tech and data global roadshow, which included seven in-person events across Europe.

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