ESG Book has introduced the LEO cloud solution, designed specifically for financial institutions and corporates to meet sustainability due diligence and disclosure requirements.
ESG Book, a London-headquartered provider of sustainability data and technology solutions, has unveiled its new tool called LEO – a platform for sustainability-linked reporting.
The platform specifically targets financial firms and corporates that must report on how sustainability issues impact financial performance, as well as how their activity impacts the environment and society. Many financial institutions, e.g. banks, asset managers, and insurers, need to report not only on the sustainability of their own operations but also of their investments.
Developed in partnership with Boston Consulting Group (BCG), LEO is leveraging the Google Cloud infrastructure for secure data sharing and optimised disclosure management. One of its helpful features is smart pre-fill capabilities for publicly disclosed data that reduce manual work. The platform’s access to over 200,000 various disclosure templates saves both time and cost of sharing sustainability information.
BCG contributed its intellectual property and sustainability expertise to the development of a standardised data request and reporting template for the LEO platform. This template forms the core of the offering, helping companies respond more efficiently to data requests. BCG also led the harmonisation of ESG data requirements across the financial industry, ensuring that the platform aligns with key global standards and is especially effective for collecting information from privately held companies, where disclosures are typically limited.
As templates are interoperable with global ESG reporting standards like those introduced by the International Sustainability Standards Board (ISSB) and Global Reporting Initiative (GRI), the company’s business customers need not waste time on double-checking compliance. It boosts transparency and trust among the clients’ partners and customers through clear and verified data.
At the same time, the platform is highly customisable. With its help, corporates and financial institutions may fine-tune their disclosure and data sourcing practices so that they meet regional regulations, relevant industry standards, and stakeholder expectations. This functionality is enabled by cloud and AI technologies, which adapt to the diverse needs of companies at different scales and across various global locations.
In addition, the new solution offers unified access to all tasks linked to sustainability reports, such as data collection, analysis, and disclosure. This unification increases efficiency and facilitates compliance preparations.
Early adopters of the new solution include major financial institutions like ING, Lloyds, and NatWest.
Sustainability reporting pressure is among the top three priorities for financial services firms nowadays. According to the latest data from KPMG’s Regulatory Barometer, the average rate of upcoming regulatory demands on the finance segment stands at 7.3 on a scale of 1 to 10. The ESG-related demands scored 7.9 points, much lower than the 8.5 recorded two years ago but still higher than average.
Even though fewer new policies are being released, the score stays high because existing rules are now taking effect, especially complex ones about sustainability reporting. While regulators are paying closer attention to climate and environmental risks, firms operating in the EU are struggling with complex interpretation and data requirements that differ for the Union and other jurisdictions, including the UK.
