The Principles for Responsible Investment (PRI) has unveiled a new report assessing the climate data which it believes investors need in order to make informed decisions and fuel engagement with portfolio companies.
In a September 4 announcement, PRI said that the report explores investors’ requirements to meet net-zero commitments, the quality of existing climate data and potential actions to build an adequate data ecosystem.
One of the three principle recommendations focuses on improving corporate disclosure as a prerequisite to improving the coverage and quality of data products.
Another suggests that data providers need to improve coverage, transparency, forward-looking analysis of climate data, and portfolio-level metrics and methodologies.
It’s also argued that wider consensus-building activities are needed to establish common definitions and agreements on sector and geographic pathways.
“These findings shine a light on the gaps that currently exist between investors’ need for high quality climate data and the data currently available,” said PRI director for sustainable systems René van Merrienboer. “Investors need better coverage and quality of climate data to deliver on their net-zero commitments. Going forward, greater convergence across the sector on common definitions and transition pathways will also be necessary to strengthen the climate data ecosystem.”