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Firms rush to fill 'huge data gaps' for SFDR

September 5, 2022

Ed Moisson


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Firms rush to fill 'huge data gaps' for SFDR

Funds and data providers are scrambling to meet the EU's deadline for enhanced disclosures of funds' sustainable investments. The Sustainable Finance Disclosure Regulation's technical standards come into effect on January 1 2023. Funds will have to disclose data relating to a range of principal adverse impact indicators, including greenhouse gas emissions and biodiversity protections.

Gabriela Herculano, chief executive officer of iClima Earth, an exchange traded fund and index provider, agrees, saying that gathering data on some of the most innovative smaller companies is "challenging". Meanwhile Ms Herculano says there is an opportunity to use more forward-looking metrics to identify sustainable investments. She gives the example of a potential avoided emissions metric, which shows the impact of not emitting carbon.

You can view a recording of the webcast here: Winning the ESG data challenge.

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