Startups rise to solve ESG’s data problems

A NEW generation of startups has emerged to solve a critical problem for the environmental, social and governance (ESG) community: Data.

As regulators, investors and consumers become more sophisticated about impact and greenwashing, they are also demanding better accounting and analysis of sustainability metrics, industry players told The Business Times. But those ambitions often come up against a wall of problems with ESG data — a wall that startups are trying to tear down.

Too many standards

Market players and observers have cited the lack of standardisation in ESG frameworks and metrics as a major problem.