ESG Handbook 2023.

ESG Is at a Turning Point.

2023 marks a pivotal moment for environmental, social, and governance (ESG) in financial data and technology. With trillions in assets under ESG management and regulatory pressures mounting across the globe, the question is no longer if your firm should adapt, but how fast you can get up to speed.

The ESG Data Handbook 2023 from A-Team Group is your essential roadmap through the complexity. This year's edition reflects the rising stakes, deepening regulations, and the crucial role of data in ensuring compliance and credibility.

Download the full handbook at the bottom of this page.

ESG Has Come of Age – But Headwinds Are Building

The growth of ESG is undeniable. Bloomberg Intelligence predicts that by 2025, more than $50 trillion of assets globally will have an ESG element. ESG-linked funds continue to attract record levels of capital.

But the landscape isn’t without its challenges. As the Handbook notes:

“There are also clear signs that the road ahead is unlikely to be as smooth as it has been to this point.”

The growing threat of political pushback, inconsistent ESG ratings methodologies, and greenwashing scandals has cast a shadow over the sector’s progress. Regulators across Europe, the US, and the UK are responding with sweeping new rules to increase transparency and curb misuse of ESG claims.

ESG Is More Than Climate – It’s a Full-Spectrum Lens

While climate change remains at the forefront, ESG today encompasses much more. This includes:

• Social dimensions: supply chain labor standards, data privacy, DEI
  
  
• Governance concerns: board diversity, executive pay, ethics
  
  
• And increasingly, financial risks associated with the transition to a net-zero economy.
  
  

As the Handbook notes:

“It can be tempting to think of ESG as limited to the environment… But it also covers everything from social issues… to governance issues like board diversity, executive pay, and business ethics.”

This broader scope demands better data, sharper analytics, and a deeper understanding of your firm's full impact.

Regulations Are Evolving – Fast

One of the most valuable parts of the ESG Data Handbook is its in-depth review of key global and regional regulations. A few highlights:

• The Paris Agreement: Sets a global benchmark for limiting global warming and mobilizing sustainable finance.
  
  
• EU Taxonomy: Defines what qualifies as a “sustainable activity,” with rigorous technical screening criteria.
  
  
• SFDR (Sustainable Finance Disclosure Regulation): Introduces new reporting rules for financial products, aiming to combat greenwashing.
  
  
• CSRD & NFRD: New and enhanced corporate reporting directives in the EU.
  
  
• Social Taxonomy (coming soon): Expanding the regulatory scope to human rights, labor practices, and social sustainability.
  
  

These rules are complex and overlapping, with timelines already in motion. Firms must act fast to align their data, policies, and reporting processes.

Data Is the Foundation of ESG Success

The ESG Handbook lays bare the data challenges that firms face:

• Disparate and unstructured ESG data sources
  
  
• Lack of standardization across regions
  
  
• The need for transparency, auditability, and metadata traceability
  
  

“Firms must urgently determine what data they need, how they plan to analyse it, how they will record and classify it, how they will maintain and update it, and how they will report it.”

The message is clear: effective ESG begins and ends with data.

What’s Next? Toward Standardization and Accountability

Despite the challenges, the momentum for ESG remains strong. As the Handbook concludes:

“Sustainable (ESG) finance is now firmly in the mainstream... and financial market participants should actively want to improve their processes – not just because it’s good for their PR… but because it’s good for the planet and its people.”

Looking ahead, convergence and standardization of ESG reporting frameworks are expected. Those who act early and build strong ESG data foundations will have a clear edge.