News
| 01.06.2020

Hanna Silvola: ¨Corona-subsidies should be connected to sustainability, but criteria and methods for comparison are missing¨

As the Finnish government is providing economic support to companies suffering from the impacts of the coronavirus pandemic, voices are raised sustainability should be one criterion for getting the support. This is not entirely uncomplicated, as there are no common criteria or methods of gathering and comparing data describing the performance on sustainability, especially for smaller businesses.

A proposal for a common EU-register for ESG data (Environmental, Social and Governance) won earlier this spring the prize of best financial innovation for combatting climate change in an international idea competition. Hanken School of Economics participated in the working group presenting the proposal. One bearing point in the proposal is that ESG data should be open for everyone.

– Large companies already publish data on ESG compliance. The challenge is that the data is spread in many different places, it is not comparable, and it is not accessible for everyone. A common register would gather all the data in one place. Companies, investors, financiers, authorities and researchers could then access and use the data, says Hanna Silvola, associate professor in accounting at Hanken.

– Without standardised, measurable and comparable criteria for ESG performance authorities cannot set specific requirements. Therefore, it is difficult to require measures for sustainability in a fair manner, Silvola says.

– The Government can - and should - require ESG compliance already at this point, but in the long run criteria and methods for gathering and comparing ESG data must be developed.

ESG data are today reported in many different ways. There are many commercial actors providing ESG analyses, but these are mainly available for those who can afford it.

The winning proposal for an ESG data register will be taken into account as a part of the EU sustainable finance action plan currently drafted in the European Commission. The idea competition was arranged by South Pole, one of the world's leading providers of responsible financing solutions and services. The proposal was presented by OP Financial Group.  Hanken participated in the working group, that also had participants from Aalto University and Aktia.

Hanken organizes a webinar on ESG reporting on the 11th of June. The webinar is hosted by Member of European Parliament Sirpa Pietikäinen. Keynote speakers are Martin Spolc, Head of Unit at the Directorate-General for Financial Stability, Financial Services and Capital Markets Union and Lars Müller from the Directorate-General for Environment at the European Commission. Please find more information on the webinar here soon.

Please find more information on the webinar here.