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Fintech Data Infrastructure for ESG Disclosure Compliance

Author

Listed:
  • Randall E. Duran

    (School of Computing and Information Systems, Singapore Management University, Singapore 178903, Singapore)

  • Peter Tierney

    (Saquish Partners, Singapore 276697, Singapore)

Abstract

Regulations related to the disclosure of environmental, governance, and social (ESG) factors are evolving rapidly and are a major concern for financial compliance worldwide. Information technology has the potential to reduce the effort and cost of ESG disclosure compliance. However, comprehensive and accurate ESG data are necessary for disclosures. Currently, the availability and quality of underlying data for ESG disclosures vary widely and are often deficient. The process involved with obtaining ESG data is also often inefficient and prone to error. This paper compares the models used and the evolution of Fintech data infrastructure developed to support financial services with the requirements and trajectory of ESG disclosure compliance. Based on existing Fintech models, it presents a sustainability data infrastructure framework that aims to address current ESG data challenges, including data governance concerns, on a large scale. In conclusion, it highlights key considerations and recommendations for policymakers.

Suggested Citation

  • Randall E. Duran & Peter Tierney, 2023. "Fintech Data Infrastructure for ESG Disclosure Compliance," JRFM, MDPI, vol. 16(8), pages 1-19, August.
    • Handle: RePEc:gam:jjrfmx:v:16:y:2023:i:8:p:378-:d:1220834
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    References listed on IDEAS

    as
    1. Andrés Alonso & José Manuel Marqués, 2019. "Financial innovation for a sustainable economy," Occasional Papers 1916, Banco de España.
    2. Carolina Almeida Cruz & Florinda Matos, 2023. "ESG Maturity: A Software Framework for the Challenges of ESG Data in Investment," Sustainability, MDPI, vol. 15(3), pages 1-18, February.
    3. Correia, Filipe & Martins, António & Waikel, Anthony, 2022. "Online financing without FinTech: Evidence from online informal loans," Journal of Economics and Business, Elsevier, vol. 121(C).
    4. Christian Haddad & Lars Hornuf, 2019. "The emergence of the global fintech market: economic and technological determinants," Small Business Economics, Springer, vol. 53(1), pages 81-105, June.
    5. Sakis Kotsantonis & George Serafeim, 2019. "Four Things No One Will Tell You About ESG Data," Journal of Applied Corporate Finance, Morgan Stanley, vol. 31(2), pages 50-58, June.
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    Cited by:

    1. Massimo Arnone & Angelo Leogrande, 2024. "The Sustainability Of The Factoring Chain In Europe In The Light Of The Integration Of Esg Factors," Working Papers hal-04629337, HAL.
    2. repec:osf:osfxxx:753gf_v1 is not listed on IDEAS

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