ESG data: FRC launches first phase of a new project – Lexology

ESG data: FRC launches first phase of a new project LexologyESG data: FRC launches first phase of a new project LexologyESG data: FRC launches first phase of a new project Lexology

The FRC’s Financial Reporting Lab (Lab), launched a new project on 29 September that focused on the production and distribution of ESG data. This is the first phase in a new project that will examine the production, distribution, and consumption of ESG data in separate phases. The Lab invited service and system providers, investors, and other interested parties to join the project. What will the scope of the project be? Participants will be able to discuss and agree on the scope of the first phase. The Lab expects it to cover: ESG data collected and produced by companies. The Lab also notes that it is interested in the following: ESG data that companies collect for internal decision-making purposes. The methods companies use to measure ESG Data. How companies get comfort (formal and informal) with the accuracy of the data. How that data is converted into external disclosure that is useful to shareholders and stakeholders. Contact the Lab at [email protected] by November 15, 2021 if you are interested in participating. Why is this project being launched? Participants will have the opportunity to create the systems that are necessary to support the production, distribution, and consumption of ESG data. These systems are not as mature as those that exist for financial information, according to the Lab. The real problem may be the number of ESG factors and the variety of issues that should be considered. Where can I find out more? Details of the project are available at https://www.frc.org.uk/news/september-2021/frc-lab-call-for-participants-esg-data The Lab notes that “Investors and other stakeholders are increasingly interested in disclosures on the environmental and social impact of companies’ activities and their governance arrangements.”

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