As the ESG wave builds, lack of quality ESG information is recognised as a key barrier to implementing ESG products. This week Fair Supply Analytics launched an ESG Research Laboratory to transform the quality and breadth of ESG data available.
2020 has proved catalytic in accelerating the shift toward ESG investment. Sustainable funds are increasingly outperforming their broad market counterparts. Investor demand is growing.
Asset and wealth managers are recognising the need to increase their ESG efforts. Yet there are barriers.
A key barrier is the lack of data. Particularly, data that is objective and verifiable at a company level (PwC. 2022, The growth opportunity of the century).
In response to this urgent need, Fair Supply Analytics has launched the ESG Research Laboratory. The Laboratory will focus specifically on “S” research that feeds directly into Fair Supply’s industry-leading ESG analytics products.
“Our investment in this new ESG Research Laboratory reflects Fair Supply Analytics commitment to our partners to remain at the frontier of ESG innovation,” said Kimberly Randle, Fair Supply’s Executive Director and Principal Lawyer.
Fair Supply Analytic’s ESG Research Laboratory is staffed by a multidisciplinary team with deep expertise in data science.
What’s in the pipeline?
The Laboratory’s first project will focus on modern slavery. The Laboratory will conduct in-depth research into the prevalence of modern slavery in each industry and country.
Fair Supply Analytics provides companies and investors tools to estimate the risk of modern slavery in the supply chains of their spend and investment portfolios.
This research will provide higher quality information to use in distributing the estimated number of slaves in a given country among the industries within that country. It will also document the specific risks associated with each sector and country in a systematic way that will allow automated assembly of reports on the relevant risks, and act as a database for desktop audits.
The ESG Lab will also be looking at the financial typologies of human trafficking offences. Westpac’s recent breaches of AML/CTF Act have brought the importance of typologies to the fore. More accurate typologies will enable better financial crime risk assessment.