Episode highlights

“I think we’re in a two-step process. The UK has its challenges, as we know. Europe has its challenges as well. When we look at the gold standard of say, analytics and reporting for ESG and linking that into say, climate risk, climate change, sustainable finance, carbon markets, and net zero, that is the EU. That is the EU as the golden standard under the EU guidance from the EBA and the ECB as well as additional global guidance from Basel Committee as well, which is, as you know, based primarily Europe based as well.”

– Navin Rauniar (8:19)

“Now if we rewind back in time, go back to 2008, financial crisis was driven by subprime loans and we thought they were prime loans. Now why was that? That was because of the data and the quality of the data from that was being used in terms of underlying collateral.

Now, do we really want to go back to those days where we didn’t understand what the data was and was the data plausible as well? Does green really mean green? Or is it shades of green that we should be doing? And one of the debates that we’re having globally is, is a sector such as gas, is it a shade of green or shade of brown? Is nuclear shade of green or a shade of brown?

Now this is the point. The whole point is that banks lend to the real economy. Banks provide credit. If we get the fundamental issue of data wrong and classification of data wrong, that means you might multiply that globally. We’re stifling lending to the real economy. And this is very, very important that we understand unstructured data, we understand time series of data as well. And thirdly, we are able to map that non-financial data to financial data as well.”

– Navin Rauniar (15:10)