The implementation of a wide range of regulatory, policy and reporting measures make this year a transitional one for the sustainable data and analytics ecosystem. Markets, companies, and the information providers that support them are moving into a new phase.

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FoSDA’s role is to enable the power of financial markets to address environmental and social issues through the provision of high quality, comprehensive data. The availability and quality of that data depends partly on disclosure standards.

FoSDA was pleased to respond to EFRAG’s recent consultation on European Sustainability Reporting Standards (ESRS). In responding, we emphasized three, key principles:

• That policymakers, regulators and standard-setters should focus on the material needs of decision-makers when considering action or guidance.
• That standards and frameworks should be aligned to improve quality and interoperability, and
• That recommendations should foster a competitive and innovative sustainable data ecosystem.

There was much to commend in EFRAG’s consultation, but some areas – particularly around ISSB alignment – where we suggested improvements. A letter summarizing our response is available on FoSDA’s publications page.

Read response letter

The Future of Sustainable Data Alliance (FoSDA) is pleased to announce the appointment of Magnus Billing as Independent Chair.

Magnus joined FoSDA in late May and will help to foster wider stakeholder engagement and productive governance.

Magnus’ appointment to this newly-created role follows the recent arrival of Will Goodhart as FoSDA’s Executive Director in April 2025. It reinforces FoSDA’s ambition and marks a further significant step forward in its mission to broaden and amplify the voice of the sustainable data and analytics ecosystem.

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Last week’s Future of Sustainable Data Alliance (FoSDA) session in Brussels brought together investors, policymakers, regulators and policy professionals from across the financial services sector to discuss the evolution of the EU’s sustainable finance framework.

Some high-level observations on the session are summarised below.

1. Broad agreement that the changes proposed through the Omnibus were driven by a genuine desire to ensure sustainability reporting and due diligence is more proportionate for EU companies, reducing burden and costs.
2. General agreement that there is room for improvement too, in terms of how the different parts of the EU sustainable finance framework fit together -> ensuring that the data required by banks and investors is generally reported by the companies they finance is important.
3. Proportionality is important for reporting entities but also for consumers of data -> nobody wants to have to weed through a 300 page document to find the salient information they seek on sustainability.
4. Interoperability must remain a central pillar of CSRD’s evolution. Aligning with ISSB standards as a baseline for global comparability, while ensuring cohesion with other EU regulations (such as SFDR and EBA Pillar 3), will be key to the framework’s credibility and usability.
5. Ensuring the pendulum does not swing too far the other way will be important to ensure investors and other stakeholders have access to the right information to take their decisions. 
   1. CSRD should retain its double materiality focus and, while the burden on SMEs can be lightened, their role in providing data in a proportionate manner will be important.
   1. Ensuring that market participants are not hindered from undertaking meaningful due diligence will also be crucial. 
   1. EU Taxonomy is shifting towards a more voluntary framework.
6. Sustainability reporting should not be a compliance exercise -> it should be a substantive exercise. 
7. The upcoming Omnibus political debates, revamping of the ESRS and VSME standard and SFDR review are crucial milestones to ensure that the EU can preserve the ambition of its green deal while making meaningful cuts to the regulatory burden.

So, where are we today?

• A major simplification effort is underway:
  • CSRD scope to change significantly and the reach of CSDDD will also be reduced with a limit on small companies’ requirement to provide data up the supply chain.
  • Double materiality will still be required, with audited and verifiable data.
  • Changes to the CSRD are likely to be reflected in the SFDR review (delayed to late 2025).
  • EU Taxonomy will remain, but its use will be voluntary. The Omnibus work might provide an opportunity to remind stakeholders of its value as defining what is ‘green’ which is particularly relevant for CapEx and revenue reporting.
  • No immediate plans to review ESG ratings as the framework is seen as sufficiently principles-based.
    
• CSRD (Corporate Sustainability Reporting Directive):
  • Scope to be narrowed; companies with over 1,000 employees likely to be considered capable of complying.
  • The review is a response to feedback that the regulation is overly complex.
  • The European Sustainability Reporting Standards (ESRS) will be reviewed in collaboration with EFRAG.
• Simplification is essential but presents challenges; careful revision of scope and required data points is underway.
  • The process is participative, with input via consultations and meetings.
  • Feedback from co-legislators (Council and Parliament) is still being reviewed, but engagement is positive.
  • SFDR (Sustainable Finance Disclosure Regulation) will also be revised to align better with CSRD outcomes and ensure interoperability.

What is the position re CSRD?

• Over 1,000 companies are already reporting under CSRD, including in countries where transposition hasn’t occurred yet.
• Positive developments:
  • Structured, more in-depth reporting.
  • Higher quality disclosures on material topics.
• Key challenges:
  • Risk of turning the exercise into compliance rather than substance.
  • Materiality is central – non-disclosure of immaterial topics is itself meaningful.
  • CSRD is designed to be interoperable with ISSB standards.

• Narrative information is essential – sustainability cannot be captured by a single summary statement like financial reporting. The objective is to place sustainability and financial reporting on an equal footing, but narrative disclosures risk becoming overly detailed, leading to the loss of the broader story and making comparability challenging. 
• Strong support for simplification, especially where granularity obscures insight.
• No change in core objectives or audience; double materiality remains central.

With regard to scope – what’s the right balance?

• One-size-fits-all approach doesn’t work – should standards for a 500-person company be the same as for a 5,000-person one?
• Proposed changes would eliminate the reporting requirement for 80% of EU companies, but only 20% of EU GDP.
• Broad enough scope is necessary to build market momentum – smaller firms may voluntarily adopt standards over time.

What is the role and status of the SME Standard and value chain reporting?

• The value chain cap is a response to concerns about the feasibility of comprehensive value chain reporting.
  • A voluntary SME standard (developed by EFRAG) is in place and not part of the current simplification
  • Companies with fewer than 1,000 employees are expected to use the SME standard
  • A formal recommendation to endorse the SME standard is expected in the summer, followed by further work on the value chain standard.
  • SMEs are still subject to double materiality, contrary to some misconceptions.

What’s the status of the ESRS review and data availability going forward?

• The EFRAG proposal is pending; they will consult publicly, ensuring stakeholder buy-in.
  • Short consultation expected over the summer.
  • Finalisation targeted for mid-Autumn.
• The central issue is the materiality assessment:
  • A better understanding of what’s material will lead to more focused and useful reporting.
  • The PRI has indicated that 700–800 data points may be considered material. Some narrative elements (e.g., policy, actions, targets) may be moved to guidance instead of mandatory reporting. 15% of ESRS data points are derived from other regulations. Potential to simplify this but to retain data valuable to SFDR and EBA Pillar 3.
  • There is no formal reduction target – the focus is on the quality and relevance of content. Some narrative-heavy data points may be either removed or reframed as examples. The number of mandatory disclosures is likely to decrease.
• Aim is to develop evidence-based judgment on what data is actually useful for decision-making. Sector-specific guidance could be helpful, but must be driven by genuine business need, not just an add-on.
• Some ESRS already have a good level of interoperability.
  • CSRD reporting firms comply with the ISSB and ESRS reporters align with the GRI. There is an intent to retain that level of interoperability.

How is the CSDDD likely to evolve as a consequence of the Omnibus?

• Capital providers are increasingly aware of the risks relating to social and human rights issues. The need for resilient supply chains supports the business case for good due diligence.
• Supply chains depend on SMEs so the main risks will often be beyond direct suppliers – the proposed limit. The legislation should maintain a risk-based approach and be consistent with key international standards.
• The lack of reported data is likely to drive an increase in the value of sector and geographic specific supply chain datasets. SMEs might see reporting as a competitive advantage.

Has the SFDR been successful and where do we go from here?

• There has been a clear improvement in the quality of disclosures, but the cost of compliance has been high and the current use of the Articles as labels isn’t all that effective, with the large majority of funds sitting in Article 8 suggesting that the current categorisation is too broad.
• Minimal requirements are useful, but there is more work to do to identify and focus on sustainability within the investment universe. The UK’s SDR provides an example of what can be done, but there are challenges around defining ‘impact’ and ‘transition’ and in distinguishing them from other categories.
• There needs to be a stronger link between corporate (CSRD) and product-level (SFDR) disclosures – without this, data cannot flow effectively. Interoperability with the CSRD and Taxonomy is essential, but there may be a need to use estimated data. Linking principal adverse indicators to corporate data could be a challenge in a 
• The objective in the SFDR review should be on simplicity, harmonisation and materiality. There should be a lighter touch approach, asking for fewer data points and potential labels should be tested with consumers to see if they would use them and if they would help them make investment choices.

The EU has been at the forefront of the sustainable finance agenda, with developments like the EUTaxonomy, SFDR, CSRD, and CSDDD building an ambitious and evolving policy framework. Significant progress has been made, and the Omnibus Simplification Package signals there’s more to come.
 
Making the most of this moment requires constructive engagement to ensure the regulatory framework remains both coherent and usable, supports innovation and enables the provision of decision-useful information for effective capital allocation.

That’s why on 15 May 2025, The Future of Sustainable Data Alliance (FoSDA)is bringing together policymakers, regulators, investors, and sustainability information providers to connect and continue the discussion on shaping a regulatory environment that drives meaningful progress.

Attendance is limited so if you’re involved in sustainable finance policy, ESG data orregulation and will be in Brussels on 15 May,  please register your interesthttps://lnkd.in/eQCXmRTG

🗓 From Disclosure to Action: How to Scale Sustainable Investment in the EU
📍 Bloomberg Office, Blvd Charlemagne 1, Brussels
🕒 Thursday 15 May, 2025 | 13:15–17:30 + Networking reception

🎤  Speakers Include:
• Dan Dionisie – European Commission

• Petr Wagner – European Commission 

• Elise Attal – UN PRI

• Ophélie Mortier – Degroof Petercam

• Patrick de Cambourg – EFRAG

• Clémence Humeau – AXA IM

• Raoul Kohler – AFM

• Viet-Linh Nguyen – AMF

• Morgan Williams – Robeco

Agenda Highlights:
🔥 Fireside Chats and Expert Panels on regulatory evolution & practical implementation
🧩 Insights into ESG data usability, policy coherence, and investor needs
🍸 Networking Reception

👉 Register here: https://lnkd.in/eQCXmRTG
📷 Photo by Janek Valdsalu on Unsplash

London, 20 March 2025 – The Future of Sustainable Data Alliance (FoSDA) is pleased to announce the appointment of Will Goodhart as Executive Director, in a newly created role. His appointment comes at a pivotal time as FoSDA amplifies its mission to strengthen the voice of the sustainable data and analytics ecosystem.

Will joins FoSDA on 22 April 2025, bringing a strong track record in organisational strategy, leadership, and sustainable finance. He will report to the Board of FoSDA and focus on working with FoSDA’s valued members to raise their voice and provide the evidence base to better inform the work of policy makers, regulators and standard setters. 

Will was previously Chief Executive at CFA UK, a role he recently stepped back from to focus on his commitment to sustainable finance and the net zero transition. Following a competitive selection process, the FoSDA Board – which comprises members from leading firms across the global data and analytics industry – was particularly impressed by Will’s collaborative leadership style combined with his passion for sustainable finance and his proven strategic expertise. 

Catalina Secreteanu, Chair of the Board of FoSDA and Managing Director, ESG Solutions, Europe at Morningstar Sustainalytics, said:

“This appointment reflects our members’ commitment to shaping the future of sustainable data at a pivotal time for the sustainable data and research industry and its clients.

Collaboration is key, and Will’s leadership will drive FoSDA’s initiatives, foster partnerships and champion the role of high-quality data and decision-making. The Board looks forward to working with Will to raise the voice of sustainable data and analytics ecosystem and to lead FoSDA into its next phase of its development.”

The Future of Sustainable Data Alliance (FoSDA) is a multi-member alliance seeking to enable the power of capital markets to tackle global environmental and social challenges through comprehensive and high-quality data and analytics. FoSDA members are from the sustainability data, analytics, ratings, research, and index providers that empower investors, companies, and governments to achieve their sustainability goals. 

FoSDA’s current members and associate members are Bloomberg, ClarityAI, EcoVadis, LSEG, Moody’s, Morningstar Sustainalytics, SIX, S&P Global, CDP, Icebreaker One and Climate Bonds Initiative.

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For media enquiries or further information, please contact:

Amanda Williams at  secretariat@futureofsustainabledata.com

+44 (0) 7725329314

Note to editors

Hi-resolution photographs of Will Goodhart and Catalina Secreteanu available on request.

The Future of Sustainable Data Alliance (FoSDA) is the proactive voice of the sustainable data industry. FoSDA was formed in Davos in January 2020, spearheaded by Refinitiv and the World Economic Forum. The purpose of the Alliance is two-fold:

1. Advocacy and Policy Engagement – to leverage data expertise to inform policy makers in their work on the development of global regulations in sustainability by ensuring thedata ecosystem’s perspective is clearly articulated. 
2. Educating and Convening – to develop data-led content and convene debates and knowledge sharing across relevant stakeholders, including offering insight to other organisations seeking to improve global sustainability/sustainable finance regulation and implementation.

FoSDA welcomes new members.  Current members comprise Bloomberg, ClarityAI, EcoVadis, LSEG, Moody’s, Morningstar Sustainalytics, SIX, S&P Global, CDP, Icebreaker One and Climate Bonds Initiative.

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This report provides a snapshot of some of the discussions within FOSDA’s Biodiversity & Nature Working Group (BWG) throughout 2024. The group engages guest speakers to discuss different aspects of the evolving Nature Finance agenda, overcome limitations regarding emerging science, technology, standards, and methods related to biodiversity integration in finance. Each session begins with an anti-trust summary to emphasise the pre-competitive nature of discussions.

Below we briefly summarise the guest and area of discussion. A longer version of the notes is available to BWG members through a request to the FOSDA secretariat.

1. Nature Metrics

o Overview: Pippa Howard, Chief Nature Strategist at Nature Metrics, addressed the multifaceted challenges of integrating biodiversity considerations into business decision-making processes. She emphasized that businesses often struggle to align their operational practices with environmental sustainability goals due to a lack of understanding and data.

o Role of Nature Metrics: Nature Metrics serves as a crucial intermediary between businesses and the natural environment. By providing robust data and analytics, they empower companies to assess their environmental impacts more accurately and report on their sustainability initiatives effectively. This role is vital in helping businesses transition towards more nature-positive practices.

o Challenges: Businesses encounter significant barriers, such as the inherent complexity of ecological systems and the necessity for location-specific data. The OECD’s “State-Pressure-Response” model acts as a strategic framework for businesses. This model guides companies in understanding the baseline health of nature, evaluating the pressures they exert on ecosystems, and formulating appropriate responses to mitigate their impacts. The emphasis on understanding these dynamics is crucial for fostering a culture of accountability and proactive environmental stewardship within organizations.

2. Green Digital Finance Alliance (GDFA)

o Overview: The GDFA focuses on developing technology-driven business models that address critical climate and biodiversity challenges. Their ‘Making Oceans Count’ initiative is particularly noteworthy, aiming to enhance the accounting of oceanrelated risks within financial systems and promote sustainable practices in marine environments.

o Key Findings: During discussions, participants highlighted the pressing need for more granular metrics and actionable data tailored for financial institutions, especially in the context of marine environments. GDFA’s work underscores the importance of integrating digital blue metrics into financial decision-making frameworks, which can significantly improve the understanding of ocean-related risks and opportunities. This initiative aims to bridge the gap between technological innovation and practical application in the finance sector, ultimately leading to better-informed investment decisions that consider the health of marine ecosystems.

3. CDP

o Overview: CDP reported a remarkable 25% increase in environmental disclosures in 2023, reflecting a growing recognition among companies of the importance of addressing nature-related risks in their operations. This increase signifies a shift towards greater transparency and accountability in environmental reporting.

o Nature Reporting: Despite this progress, nature-related reporting continues to lag behind climate-related disclosures, which poses significant challenges for strategic decision-making. Many organizations still lack comprehensive frameworks to assess their biodiversity impacts effectively. CDP aims to enhance its corporate questionnaire to better integrate nature-related data, focusing on expanding the coverage of biodiversity metrics and improving alignment with global standards. This effort is essential for fostering a more holistic understanding of environmental risks and opportunities, enabling companies to make informed decisions that support sustainability.

4. Business for Nature (BfN)

o Overview: BfN’s mission is to drive credible business action towards a naturepositive economy by 2030. The organization works to mobilize businesses and advocate for policies that support biodiversity conservation and sustainable practices.

o Policy Ambition: Ahead of COP16, BfN calls for renewed policy ambition for nature, emphasizing the need for governments to take decisive action to protect biodiversity. The organization aims to facilitate business discussions at the conference, encouraging collaboration between the private sector and policymakers. By leveraging its global coalition of influential partners, BfN seeks to amplify the voices of businesses committed to nature-positive actions, fostering a collective approach to addressing biodiversity loss and promoting sustainable development.

5. Natural History Museum

o Overview: Gareth Thomas presented the Biodiversity Intactness Index (BII), a critical metric for measuring ecosystem integrity and assessing biodiversity loss across various regions. This index provides valuable insights into the health of ecosystems and their ability to support diverse species.

o Importance of BII: The BII is essential for tracking biodiversity changes and. informing decision-making processes, particularly in relation to economic dependencies on nature. By offering a comprehensive measure of biodiversity health, the BII helps stakeholders understand the implications of biodiversity loss on economic systems and supply chains. The index serves as a vital tool for policymakers, businesses, and conservationists alike, enabling them to make datadriven decisions that promote ecosystem resilience and sustainability.

6. Roundtable on Addressing Ecological and Economic Risks

o Overview: FOSDA members and key nature finance stakeholders convened to discuss the Nature Public Facility (NPF) concept, aimed at providing standardized nature-related data for market participants. This initiative seeks to enhance the availability and accessibility of high-quality data that can inform investment decisions and risk assessments.

o Earth Observation Role: The discussions emphasized the critical role of Earth observation in providing reliable data for environmental indicators. Participants highlighted the need for a deeper understanding of ecological risks and their economic implications, particularly in the context of global supply chains. By improving data access and quality, the NPF can support market participants in identifying opportunities and managing risks associated with biodiversity loss, ultimately contributing to more sustainable financial practices.

7. Credit Nature

o Overview: Credit Nature’s CEO, Cain Blyth, discussed the organization’s vision to drive a global movement focused on rewilding the planet for the benefit of both people and nature. This vision encompasses a holistic approach to nature restoration that integrates technology, finance, and data.

o Nature Credits Market: The conversation centred on the necessity for accurate measurement and reporting to facilitate nature-positive strategies. Blyth emphasized the importance of establishing credible baselines and standards for nature credits, which are essential for ensuring that investments deliver genuine environmental benefits. By promoting integrity in nature-related investments, Credit Nature aims to foster a market environment where businesses can confidently engage in initiatives that contribute positively to biodiversity and ecosystem health. The discussions throughout 2024 reflect a growing recognition of the interconnectedness of nature and business, with increasing efforts to integrate biodiversity into financial decisionmaking. The establishment of frameworks and metrics to support this integration is critical as the world moves towards a more sustainable future. A notable area of focus is the development of a nature data facility, led by TNFD, which will allow FoSDA members to influence an open-access database for monitoring the state of nature using key metrics as we move into 2025. The collaborative efforts of the BWG and its partners are paving the way for a more robust understanding of nature-related risks and opportunities.

The Future of Sustainable Data Alliance (FoSDA) is hiring an Executive Director to lead our mission of advancing sustainable finance through high-quality data and analytics. This role is a unique opportunity to work with leading organisations in the data provider industry including Bloomberg, S&P Global, SIX, Moody’s, Morningstar Sustainalytics, LSEG, EcoVadis, ClarityAI, the Climate Bonds Initiative and CDP.

Key Responsibilities:

• Serve as the head of the organisation, building and managing relationships within the sustainable finance and regulatory ecosystem.
• Oversee strategy implementation and annual workplan execution, expanding FoSDA’s role and impact working collaboratively across the ecosystem.
• Lead business development, focusing on membership growth and engagement.

About the Role:

• Flexible work arrangements (part- or full-time, minimum 3 days per week).
• Competitive salary package.
• Location: Remote working, within reasonable travelling distance of London. 

The deadline for submissions is 6 December 2024. We are not accepting unsolicited requests from third party recruiters at this time. For further information and to apply, please contact secretariat@futureofsustainabledata.com