Digital transformation in financial services

Investments and sustainability

To invest responsibly in sustainable finance over time, to select financial solutions or products that bring together the three areas of environment, social aspects and governance, it is obvious that digital and in particular data ) are the keys that allow and will enable us to achieve these objectives. With known, reliable and usable data, we obtain the knowledge to establish adequate and efficient governance, to invest in proactive companies that integrate these three axes by acting in a sustainable and profitable way, reducing our impact on the environment, contributing to a better distribution of value with respect for everyone and our planet.

To do this, governments and politicians, through regulators, need to better supervise companies, by identical standards throughout the world, so that they provide qualitative data for all of their activities. Currently, according to UNPRI* (the PRI – Principles for Responsible Investment – ​​is an investor initiative in partnership with the UNEP Finance Initiative** and the United Nations Global Compact), we are rather at 20% of accessible and usable data. We are therefore very far from bringing together the ideal conditions (80% missing information) for a fully sustainable economy and finance. This means that asset managers can only base their ESG investment analyzes on a small fraction of the data of the company in question since it is not yet able and/or obliged to know and transmit, if it is not the whole, a much more significant part of the impact of its activities in the ecosystem. Also, current ESG investments are limited, but the path to follow is known and the actions to be taken to deploy these aspects in a systematic way so that this type of investment becomes widespread and also becomes the norm. It suits industries and regulators to be more demanding.

*UNPRI: The Principles for Responsible Investment is an international network of financial institutions supported by the United Nations who work together to implement these six ambitious principles, often referred to as “the Principles”.

** UNEP: The United Nations Environment Program (UNEP) is the global authority that sets the environmental agenda, promotes the coherent implementation of the environmental dimension of sustainable development within the United Nations system and makes authority as a defender of the global environment. UNEP’s European office is based in Geneva, where it offers its expertise to governments to address environmental challenges, conducts a range of projects, raises awareness among citizens and participates in stakeholder dialogues.

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Digital transformation in financial services

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