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Non-finance data sets increasingly sit at the heart of investment with over 70 % of decisions impacted by ESG factors
Bright Data ( formerly Luminati Networks ), a leading online data collection platform , has released new research findings that underscore the importance of Environmental , Social and Governance ( ESG ) considerations in investing and demonstrate the importance organisations place on environmental and social impact when doing business .
Research , carried out by research provider , Vanson Bourne , highlighted US survey respondents from within the finance , banking and insurance sectors who said that just over three-quarters ( 76 %) of their organisation ’ s investment decisions are impacted by ESG factors , whereas for UK respondents it ’ s 67 %.
Traditionally , the finance sector has relied heavily on pure financial data sets , but research has shown the increase in awareness around ESG considerations . This is powered by ESG data sets , a form of alternative / external data , and includes measurable metrics from areas such as energy use , emissions , harassment and discrimination lawsuits , board diversity , social involvement or involvement in worthy causes .
The findings ranked the most pressing ESG considerations and found environmental practices ( 69 %), organisational diversity ( 64 %) and corporate governance ( 64 %) as the most important considerations for 100 CDOs ( chief data scientists ), CTOs , heads of data , CIOs and those who report to them . In addition to impacting investment decisions , ESG performance was also reviewed for business partnerships , with 95 % of survey respondents in the US and UK saying that their respective organisations take the ESG performance of its suppliers / vendors into account .
Data is undoubtedly the lifeblood of business and publicly available web-based data is being collected to generate insights surrounding ESG performance . The use of data is a key takeaway from the research as 100 % of interviewed respondents from data departments stated that their organisations incorporate ESG data into all or some business strategy decisions .
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