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ESG Isn’t Dead, Just Delayed: Why Asset Managers Must Balance Data Challenges with Long-Term Commitments According tot the below FT article - asset managers face criticism on two fronts: not doing enough to tackle climate change and overstating their funds' green credentials. They argue that unreliable and inconsistent ESG data makes it difficult to assess companies’ environmental efforts, especially for smaller firms and emerging markets. However, critics like ShareAction say this is no excuse, as many managers fail to act on existing data or engage systematically with companies. While ESG data quality is improving, regulators and asset managers must drive better disclosure and accountability. Data imperfections shouldn’t stall progress—using available tools more effectively can drive real change. My Take: ESG data still lacks maturity. For now, consolidating multiple sources remains the best approach until common standards and regulatory enforcement drive consistency among data providers. While ESG was a major trend a few years ago, focus has shifted toward ETF growth and, more importantly, investments in multi-asset classes, particularly private markets. Does this mean the buy side should abandon ESG? I don't think so. Firms must proceed cautiously, recognizing ongoing data challenges and building robust data management frameworks to address this. With the new political environment in the U.S. in 2025, a regulatory push on ESG standards seems unlikely. ESG’s time will come again—just not now. #buyside #esginvesting

Data shortfall undermines ESG investment, asset managers warn

Data shortfall undermines ESG investment, asset managers warn

ft.com

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