The latest session of the IIF’s DataTalk focused on Data and ESG, with a particular focus on the challenges financial service firms face in measuring the financial risks of climate change. This note provides a summary of the key themes that emerged, noting that the conversation was conducted under the Chatham House Rule, and comments are unattributed. For context, DataTalk is our community of practice, held in partnership with knowledge partner the Oliver Wyman Forum, to bring together data officers and experts for interactive sessions on key data topics in financial services.

The threat of climate change has thrust environmental, social, and governance issues (ESG) to the top of the agenda for the financial services industry and global regulators. The complex, long-term nature of the threat makes it too big to ignore but very difficult to measure the risk with a great degree of precision. Better-quality data is needed along with the tools, like artificial intelligence, that can analyze it properly. Regulators and industry bodies should work to develop taxonomies and disclosure standards that are globally comparable and avoid the risk of market fragmentation.

The DataTalk series continues later this month on July 7th at 9:00pm New York time, where we will discuss Operational Risk.

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