In an interview with top environmental publication Business Green, guest author for S&P Global Ratings and the director of the Sustainable Finance Programme at the University of Oxford, Ben Caldecott, explains that an asset-specific approach to assessing a firms’ exposure to environmental risk may help improve transparency and accuracy.
In the article, Caldecott argues that rather than traditional disclosure and annual reporting regimes, building up asset specific data-sets could provide a more sophisticated, bottom-up approach to measuring environmental risk. Ultimately this would allow for a continual source of data, thus improving accuracy and reliability.
“The good news is that much of the data required to undertake this already exists,” Caldecott told Business Green. The challenge, however, lies in bringing this data together, ranging from external sources to information provided by the asset owner.
“It’s just in disparate locations and needs to be brought together,” Caldecott concludes.