GLEIF on Using LEI for ESG Reporting and Adding LEI Datasets to AWS
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.
Related Links
- 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
Featured Experts
James Partridge
Credit analytics expert helping clients understand, develop, and implement credit models for origination, monitoring, and regulatory reporting.
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Hasan Cerhozi
Hasan leads Moody’s Analytics ESG methodology development. He is expert on carbon transition, nature related risks and is a guest lecturer at ESSEC Business school on sustainable finance.
Previous Article
ECB Publishes Scenarios and Templates for Climate Risk Stress TestsRelated Articles
BIS and Central Banks Experiment with GenAI to Assess Climate Risks
A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe
Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures
Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.
Singapore to Mandate Climate Disclosures from FY2025
Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
EBA Proposes Standards Related to Standardized Credit Risk Approach
The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.