The FRC Lab has today published a report on ESG data production, designed to help companies consider how to collect and use ESG data more effectively to support better decision-making.
The FRC’s ESG statement of intent published in 2021 identified that the systems producing, distributing and using ESG data are significantly less mature than those for financial information. Today’s report focuses on how companies can improve their ESG data for effective decision-making.
The report sets out the three key elements of ESG data production: motivation, method and meaning. It’s clear the current data landscape is a complex one with challenges for Boards and executives on how to identify and use the most relevant information. This report outlines some suggested positive actions to address these challenges as well as how Boards can optimise how ESG data is collected and applied.
Josephine Jackson, Chair of the FRC ESG and Climate Group, said, “High-quality data is critical to high-quality decision-making. Improving the systems and processes for the production of ESG data, as well as embedding a joined-up approach to data collection will result in better decision-useful information. In turn this will lead to more relevant and reliable disclosures for all users who rely on companies for clear reporting of ongoing performance and future prospects.”
The full report is available here.