{"id":51062,"date":"2020-10-05T07:35:31","date_gmt":"2020-10-05T14:35:31","guid":{"rendered":"https:\/\/cm-edgetun.pages.dev\/en-us\/industry\/microsoft-in-business\/?p=51062"},"modified":"2020-10-05T07:35:31","modified_gmt":"2020-10-05T14:35:31","slug":"the-esg-data-conundrum-and-the-sdg-funding-gap-whats-the-path-forward","status":"publish","type":"post","link":"https:\/\/cm-edgetun.pages.dev\/en-us\/industry\/microsoft-in-business\/business-transformation\/2020\/10\/05\/the-esg-data-conundrum-and-the-sdg-funding-gap-whats-the-path-forward\/","title":{"rendered":"The ESG data conundrum and the SDG funding gap: what\u2019s the path forward?"},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" class=\"attachment-full webp-format alignright\" src=\"https:\/\/cm-edgetun.pages.dev\/en-us\/industry\/blog\/wp-content\/uploads\/sites\/28\/2020\/09\/ESGSustainabilityBlogandSC_Blog_640x360_Opt2.jpg\" alt=\"Turbines\" width=\"565\" height=\"318\" data-orig-srcset=\"https:\/\/cm-edgetun.pages.dev\/en-us\/industry\/blog\/wp-content\/uploads\/sites\/28\/2020\/09\/ESGSustainabilityBlogandSC_Blog_640x360_Opt2.jpg 640w, https:\/\/cm-edgetun.pages.dev\/en-us\/industry\/blog\/wp-content\/uploads\/sites\/28\/2020\/09\/ESGSustainabilityBlogandSC_Blog_640x360_Opt2-300x169.jpg 300w, https:\/\/cm-edgetun.pages.dev\/en-us\/industry\/blog\/wp-content\/uploads\/sites\/28\/2020\/09\/ESGSustainabilityBlogandSC_Blog_640x360_Opt2-330x186.jpg 330w, https:\/\/cm-edgetun.pages.dev\/en-us\/industry\/blog\/wp-content\/uploads\/sites\/28\/2020\/09\/ESGSustainabilityBlogandSC_Blog_640x360_Opt2-400x225.jpg 400w, https:\/\/cm-edgetun.pages.dev\/en-us\/industry\/blog\/wp-content\/uploads\/sites\/28\/2020\/09\/ESGSustainabilityBlogandSC_Blog_640x360_Opt2-235x132.jpg 235w\" data-orig-src=\"https:\/\/cm-edgetun.pages.dev\/en-us\/industry\/blog\/wp-content\/uploads\/sites\/28\/2020\/09\/ESGSustainabilityBlogandSC_Blog_640x360_Opt2.jpg\" \/><\/p>\n<p><span data-contrast=\"auto\">The financial services industry worldwide recognize<\/span><span data-contrast=\"auto\">s<\/span><span data-contrast=\"auto\">\u00a0sustainability as both risk and opportunity. With a real global need,\u00a0<\/span><span data-contrast=\"auto\">growing\u00a0<\/span><span data-contrast=\"auto\">regulatory pressures, a\u00a0<\/span><span data-contrast=\"auto\">clear moral mission, and unstaunched innovation, sustainability is proven to be a massive growth play. The green bonds market is on a roar\u00a0<\/span><span data-contrast=\"auto\">and<\/span><span data-contrast=\"auto\">\u00a0banks are raising their sustainable finance objectives,\u00a0<\/span><span data-contrast=\"auto\">while investors hunger for green assets over brown.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Y<\/span><span data-contrast=\"auto\">et we\u2019re still far from meeting the UN\u2019s\u00a0<\/span><span data-contrast=\"auto\">S<\/span><span data-contrast=\"auto\">ustainable\u00a0<\/span><span data-contrast=\"auto\">D<\/span><span data-contrast=\"auto\">evelopment\u00a0<\/span><span data-contrast=\"auto\">G<\/span><span data-contrast=\"auto\">oals (SDG<\/span><span data-contrast=\"auto\">s<\/span><span data-contrast=\"auto\">) annual funding target of $2.6 trillion outlined in the Paris Agreement.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Capital markets are\u00a0<\/span><span data-contrast=\"auto\">all about\u00a0<\/span><span data-contrast=\"auto\">managing risk.\u00a0<\/span><span data-contrast=\"auto\">S<\/span><span data-contrast=\"auto\">ustainability represents a massive\u00a0<\/span><span data-contrast=\"auto\">one<\/span><span data-contrast=\"auto\">\u00a0we still\u00a0<\/span><span data-contrast=\"auto\">struggle<\/span><span data-contrast=\"auto\">\u00a0to\u00a0<\/span><span data-contrast=\"auto\">fully grasp<\/span><span data-contrast=\"auto\">, let alone\u00a0<\/span><span data-contrast=\"auto\">accurately\u00a0<\/span><span data-contrast=\"auto\">price into financial assets. Part of the struggle comes when trying to collect the necessary\u00a0<\/span><span data-contrast=\"auto\">insight and apply the best technology\u00a0<\/span><span data-contrast=\"auto\">to assess\u00a0<\/span><span data-contrast=\"auto\">it<\/span><span data-contrast=\"auto\">.<\/span><span style=\"font-size: 1.4rem\" data-contrast=\"auto\">\u00a0<\/span><span style=\"font-size: 1.4rem\" data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<h2>What\u2019s holding us up?<\/h2>\n<p><span data-contrast=\"auto\">Without data, banks,\u00a0<\/span><span data-contrast=\"auto\">insurers,\u00a0<\/span><span data-contrast=\"auto\">and investors struggle to fully evaluate the risks of financing\u00a0<\/span><span data-contrast=\"auto\">and underwriting\u00a0<\/span><span data-contrast=\"auto\">ESG\u00a0<\/span><span data-contrast=\"auto\">opportunities, limiting the funding they can provide. They<\/span><span data-contrast=\"auto\">\u00a0are<\/span><span data-contrast=\"auto\">\u00a0<\/span><span data-contrast=\"auto\">rushing to\u00a0<\/span><span data-contrast=\"auto\">re<\/span><span data-contrast=\"auto\">imagine<\/span><span data-contrast=\"auto\">\u00a0the way\u00a0<\/span><span data-contrast=\"auto\">they\u00a0<\/span><span data-contrast=\"auto\">think about risk\u00a0<\/span><span data-contrast=\"auto\">and<\/span><span data-contrast=\"auto\">\u00a0<\/span><span data-contrast=\"auto\">design<\/span><span data-contrast=\"auto\">\u00a0a more holistic approach beyond just\u00a0<\/span><span data-contrast=\"auto\">traditional\u00a0<\/span><span data-contrast=\"auto\">financial data<\/span><span data-contrast=\"auto\">\u00a0and anxieties<\/span><span data-contrast=\"auto\">. This means collecting\u00a0<\/span><span data-contrast=\"auto\">massive amounts of\u00a0<\/span><span data-contrast=\"auto\">new,\u00a0<\/span><span data-contrast=\"auto\">granular\u00a0<\/span><span data-contrast=\"auto\">data\u00a0<\/span><span data-contrast=\"auto\">such as<\/span><span data-contrast=\"auto\">\u00a0<\/span><span data-contrast=\"auto\">soil conditions, weather patterns, carbon consumption, water wastage<\/span><span data-contrast=\"auto\">, et<\/span><span data-contrast=\"auto\">\u00a0cetera,<\/span><span data-contrast=\"auto\">\u00a0<\/span><span data-contrast=\"auto\">and predict<\/span><span data-contrast=\"auto\">\u00a0what<\/span><span data-contrast=\"auto\">\u00a0the likely outcome will be<\/span><span data-contrast=\"auto\">.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">But\u00a0<\/span><span data-contrast=\"auto\">how to collect and assess that data without the right technology in place?<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<h2>Demonstrating ESG credentials<\/h2>\n<p><span data-contrast=\"auto\">Sustainability\u00a0<\/span><span data-contrast=\"auto\">is not just\u00a0<\/span><span data-contrast=\"auto\">a\u00a0<\/span><span data-contrast=\"auto\">badge of honor<\/span><span data-contrast=\"auto\">\u00a0or a line item in the annual report<\/span><span data-contrast=\"auto\">. It\u2019s the lens<\/span><span data-contrast=\"auto\">\u00a0through which<\/span><span data-contrast=\"auto\">\u00a0<\/span><span data-contrast=\"auto\">enterprises aspire to be seen by their customers and stakeholders<\/span><span data-contrast=\"auto\">\u00a0alike<\/span><span data-contrast=\"auto\">. ESG maturity is the new table stakes in a market where the burden of progress is falling more and more on private sector shoulders.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Green is the new cool among a new generation clamoring for change. But it\u2019s good business too as ESG credentials often afford higher<\/span><span data-contrast=\"auto\">\u00a0<\/span><span data-contrast=\"auto\">multiples<\/span><span data-contrast=\"auto\">, greater business performance<\/span><span data-contrast=\"auto\">,<\/span><span data-contrast=\"auto\">\u00a0and better market terms.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Data\u00a0<\/span><span data-contrast=\"auto\">remains<\/span><span data-contrast=\"auto\">\u00a0key<\/span><span data-contrast=\"auto\">,\u00a0<\/span><span data-contrast=\"auto\">creating transparency from<\/span><span data-contrast=\"auto\">\u00a0factory floors and farmyards to Wall Street and London<\/span><span data-contrast=\"auto\">.\u00a0<\/span><span data-contrast=\"auto\">T<\/span><span data-contrast=\"auto\">ogether, technology and finance are\u00a0<\/span><span data-contrast=\"auto\">essential for<\/span><span data-contrast=\"auto\">\u00a0success.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<h2>Making sense of the data<\/h2>\n<p><span class=\"TextRun SCXW129950045 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW129950045 BCX0\">While data is imperative, it\u2019s of little use unless\u00a0<\/span><\/span><span class=\"TextRun SCXW129950045 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW129950045 BCX0\">there\u2019<\/span><\/span><span class=\"TextRun SCXW129950045 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW129950045 BCX0\">s a capability to understand, reason<\/span><\/span><span class=\"TextRun SCXW129950045 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW129950045 BCX0\">,<\/span><\/span><span class=\"TextRun SCXW129950045 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW129950045 BCX0\">\u00a0and interact with that data in a modern, secure, hyperscale manner to inform outcomes and remediations.\u00a0<\/span><\/span><span class=\"TextRun Highlight SCXW129950045 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"none\"><span class=\"NormalTextRun SCXW129950045 BCX0\">We can\u2019t solve a problem we don\u2019t fully understand. That\u2019s why\u00a0<\/span><\/span><span class=\"TextRun Highlight SCXW129950045 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"none\"><span class=\"NormalTextRun SCXW129950045 BCX0\">we\u2019ll<\/span><\/span><span class=\"TextRun Highlight SCXW129950045 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"none\"><span class=\"NormalTextRun SCXW129950045 BCX0\">\u00a0aggregate environmental data from around the world and put it to work through computing and machine learning in a new Planetary\u00a0<\/span><\/span><span class=\"TextRun Highlight SCXW129950045 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW129950045 BCX0\">Computer<\/span><\/span><span class=\"TextRun Highlight SCXW129950045 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW129950045 BCX0\">.\u00a0<\/span><\/span><span class=\"TextRun Highlight SCXW129950045 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW129950045 BCX0\">We\u2019ll\u00a0<\/span><\/span><span class=\"TextRun Highlight SCXW129950045 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW129950045 BCX0\">partner with our\u00a0<\/span><\/span><span class=\"TextRun Highlight SCXW129950045 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW129950045 BCX0\">financial services\u00a0<\/span><\/span><span class=\"TextRun Highlight SCXW129950045 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW129950045 BCX0\">customers in their Impact Finance initiatives<\/span><\/span><span class=\"TextRun Highlight SCXW129950045 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW129950045 BCX0\">,<\/span><\/span><span class=\"TextRun Highlight SCXW129950045 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW129950045 BCX0\">\u00a0helping our mutual customers achieve their sustainability goals.<\/span><\/span><span class=\"EOP SCXW129950045 BCX0\" data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<h2>Filling the gap<\/h2>\n<p><span data-contrast=\"auto\">We fail to meet the SDG targets\u00a0<\/span><span data-contrast=\"auto\">at our peril<\/span><span data-contrast=\"auto\">. By improving data collection<\/span><span data-contrast=\"auto\">, putting the right technology and finance in place,<\/span><span data-contrast=\"auto\">\u00a0and creating a standard<\/span><span data-contrast=\"auto\">, immutable\u00a0<\/span><span data-contrast=\"auto\">measurement of\u00a0<\/span><span data-contrast=\"auto\">ESG\u00a0<\/span><span data-contrast=\"auto\">risk,\u00a0<\/span><span data-contrast=\"auto\">we<\/span><span data-contrast=\"auto\">\u00a0can\u00a0<\/span><span data-contrast=\"auto\">help fill\u00a0<\/span><span data-contrast=\"auto\">th<\/span><span data-contrast=\"auto\">e<\/span><span data-contrast=\"auto\">\u00a0SDG gap<\/span><span data-contrast=\"auto\">,\u00a0<\/span><span data-contrast=\"auto\">expand<\/span><span data-contrast=\"auto\">ing<\/span><span data-contrast=\"auto\">\u00a0the marketplace for corporate, institutional, and individual investors<\/span><span data-contrast=\"auto\">\u00a0and for consumers, farmers, employees<\/span><span data-contrast=\"auto\">,<\/span><span data-contrast=\"auto\">\u00a0and shareholders as well<\/span><span data-contrast=\"auto\">.\u00a0<\/span><span data-contrast=\"auto\">Microsoft is helping to fill the SDG gap<\/span><span data-contrast=\"auto\">\u00a0by<\/span><span data-contrast=\"auto\">\u00a0leveraging our customer experiences and journey as a business to create a more sustainable world.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">To learn more about improving data collection models and Microsoft\u2019s additional sustainable initiatives, visit our\u00a0<\/span><a href=\"https:\/\/cm-edgetun.pages.dev\/en-us\/corporate-responsibility\/sustainability\"><span data-contrast=\"none\">Corporate Responsibility Hub<\/span><\/a><span data-contrast=\"none\">.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The financial services industry worldwide recognizes\u00a0sustainability as both risk and opportunity. With a real global need,\u00a0growing\u00a0regulatory pressures, a\u00a0clear moral mission, and unstaunched innovation, sustainability is proven to be a massive growth play. The green bonds market is on a roar\u00a0and\u00a0banks are raising their sustainable finance objectives,\u00a0while investors hunger for green assets over brown.<\/p>\n","protected":false},"author":438,"featured_media":51146,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"ep_exclude_from_search":false,"_classifai_error":"","_classifai_text_to_speech_error":"","footnotes":""},"categories":[1536],"post_tag":[1599],"content-type":[],"coauthors":[1206,959,378],"class_list":["post-51062","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-transformation","tag-financial-services"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>The ESG data conundrum and the SDG funding gap: what\u2019s the path forward? - Microsoft in Business Blogs<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cm-edgetun.pages.dev\/en-us\/industry\/microsoft-in-business\/business-transformation\/2020\/10\/05\/the-esg-data-conundrum-and-the-sdg-funding-gap-whats-the-path-forward\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The ESG data conundrum and the SDG funding gap: what\u2019s the path forward? - Microsoft in Business Blogs\" \/>\n<meta property=\"og:description\" content=\"The financial services industry worldwide recognizes\u00a0sustainability as both risk and opportunity. 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