Fragmentation, guesswork, and inconsistent methodologies mean climate data still has a long journey ahead.
“There is currently a distinct lack of Scope 3 emissions data that is available to the public,” said Yann Bloch, head of product and pre-sales Americas at global financial software company NeoXam. “This has to change in order to bring the climate data landscape to an acceptable level.”
Given the fragmented nature of the data provider market, investors are often forced to carry out a certain degree of analysis themselves based on the raw data that underpins climate information. “This is ultimately dependent on their data management capabilities, and being able to easily provide the right data to those conducting that analysis,” Bloch added.
According to Bloch, emerging market, small cap, or private market assets, have “a lot of holes” in the information that is available. Private market assets, in particular, require a greater degree of personal analysis by investors who want to accurately account for climate considerations.