The Global Legal Entity Identifier Foundation (GLEIF) published the monthly report that analyzes the overall data quality in the Global LEI System. In addition, GLEIF published an article that discusses why ensuring a holistic entity identification mechanism through a global standard, such as the LEI, is a foundational step toward consistent, compatible and transparent environmental, social, and governance (ESG) reporting and data exchanges. Another article focuses on the Amazon and OS-Climate partnership, which intends to add LEI datasets to Amazon’s Sustainability Data Initiative (ASDI) open-data catalog and is working to improve global sustainability data modeling, mapping, and calculations as well as the expected impact on climate finance risk and opportunity evaluations.
The LEI data is critical to helping businesses assess climate change-related risks of their investments. Having this type of information next to other foundational datasets in the cloud, along with access to computational capabilities, can help streamline the risk assessment process. In this collaboration, GLEIF retains complete control and ownership of data in the Amazon Web Services cloud, but all costs related to data storage and egress are covered by the ASDI program. GLEIF is committed to managing the data and making it openly available to anyone. Groups like OS-Climate, Allianz, and BNP Paribas are then able to access the LEI dataset on the AWS cloud and use it more effectively to get better insights into the transitional and physical climate risks of their financial investments.
Coming back to the article that discusses the qualities of LEI that position it perfectly to deliver the missing components of a robust, efficient, and effective global ESG discovery and reporting framework, GLEIF suggests that the LEI can also help to streamline data collection, aggregation, and analysis of ESG risks for private unlisted companies, where there is less systematic coverage compared to publicly listed companies. The article highlights that inclusion of LEI in the due diligence checklist by ESG ratings and data products providers can help to assess the information and screen inconsistencies during pre-validation phase while contributing to informing the investment decisions of investors. GLEIF suggests that the existing challenges in accessing reliable, comparable, and relevant data that inform on sustainable risks, opportunities, and impact can be greatly reduced by ensuring that ESG data submission starts with the mandatory unique and unambiguous identification of legal entities by the LEI.
- Notification on Data Quality Report
- Article on Using LEI for ESG Data Collation and Reporting
- Article on Addition of LEI Datasets to ASDI
Keywords: International, Banking, Insurance, Securities, Climate Change Risk, Sustainable Finance, ESG, LEI, Reporting, Data Collection, Data Quality Report, Regtech, ASDI, AWS, GLEIF
Dr. Denton provides industry leadership in the quantification of sustainability issues, climate risk, trade credit and emerging lending risks. His deep foundations in market and credit risk provide critical perspectives on how climate/sustainability risks can be measured, communicated and used to drive commercial opportunities, policy, strategy, and compliance. He supports corporate clients and financial institutions in leveraging Moody’s tools and capabilities to improve decision-making and compliance capabilities, with particular focus on the energy, agriculture and physical commodities industries.
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