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
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
Michael Denton, PhD, PE
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.
Previous Article
ECB Publishes Scenarios and Templates for Climate Risk Stress TestsRelated Articles
EU Agencies Update LCR Rule and Macro-Prudential Policy Recommendation
The European Commission (EC) published the Delegated Regulation 2022/786 with regard to the liquidity coverage requirements for credit institutions under the Capital Requirements Regulation (CRR).
EBA Publishes Regulatory Standards to Identify Shadow Banking Entities
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying the criteria to identify shadow banking entities for the purposes of reporting large exposures.
EIOPA Examines Physical Climate Risk Exposure, SII Non-Compliance
The European Insurance and Occupational Pensions Authority (EIOPA) published a report assessing insurers' exposure to physical climate change risks
NGFS Report Explores Quantification of Climate Risk Differentials
The Network for Greening the Financial System (NGFS) published two reports to aid central banks and regulators in their oversight of the financial sector and in their central bank operations
EC Publishes Results on Review of Web Accessibility Directive
The European Commission (EC) published the results of a public consultation, held in October 2021, on the review of the Web Accessibility Directive.
MAS Consults on Adjustment Spreads for Conversion of SOR Contracts
The Monetary Authority of Singapore (MAS) and the SC-STS are jointly consulting, until June 10, 2022, on setting adjustment spreads for the conversion of legacy SOR contracts to SORA reference rate.
OSFI Discusses Benchmark Rate Transition, Sets Out Work Priorities
The Office of the Superintendent of Financial Institutions (OSFI) published the strategic plan for 2022-2025 and the departmental plan for 2022-23.
EBA Proposes Standards to Support Secondary NPL Markets
The European Banking Authority (EBA) is consulting, until August 31, 2022, on the draft implementing technical standards specifying requirements for the information that sellers of non-performing loans (NPLs) shall provide to prospective buyers.
EU Confirms Agreement on Rules on Cybersecurity and Banking Resolution
The European Council and the Parliament reached an agreement on the revised Directive on security of network and information systems (NIS2 Directive).
EBA Issues Standards for Crowdfunding Service Providers Under ECSPR
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying information that crowdfunding service providers shall provide to investors on the calculation of credit scores and prices of crowdfunding offers.
