Publication Type

Journal Article

Version

publishedVersion

Publication Date

8-2023

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.

Keywords

sustainability, ESG, compliance, reporting, disclosure, Fintech, data, infrastructure, framework

Discipline

Databases and Information Systems

Research Areas

Intelligent Systems and Optimization

Publication

Journal of Risk and Financial Management

Volume

16

Issue

8

First Page

1

Last Page

19

ISSN

1911-8066

Identifier

10.3390/jrfm16080378

Publisher

MDPI

Additional URL

https://doi.org/10.3390/jrfm16080378

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