The Importance of data as an ESG tool and catalyst for good

James Claude, CEO of Global Voice Group.

Human interaction with the planet has caused many problems, including the degradation of biodiversity and the rapid onset of a planetary climate change emergency. Unless public and private sectors across the globe understand the associated risks and move toward a low carbon and sustainable way of operating, we will continue to see a breakdown of key sectors, economies and society. In line with the changes being experienced on a global scale, data has become central to most aspects of life and it has a role to play in the execution of an Environmental, Social and Governance (ESG) strategy. Data has been integrated into the decision-making process of many governments and organisations globally, with African nations slowly adopting the use of data as well.

ESG traces its roots to January 2004, when former UN Secretary General Kofi Annan wrote to over 50 CEOs of major financial institutions, inviting them to participate in a joint initiative under the auspices of the UN Global Compact, with the support of the International Finance Corporation (IFC) and the Swiss Government. The initiative was aimed at finding ways to integrate ESG into capital markets. A year later, this initiative produced a report entitled “Who Cares Wins”. The report postulated that embedding environmental, social and governance factors in capital markets makes good business sense and leads to more sustainable markets and better outcomes for societies.