With increasing global attention on Environmental, Social, and Governance (ESG) issues, high-quality, trusted ESG data has become a critical factor for enterprises, investors, and financial institutions to assess and compare climate-related disclosures, environmental risk management, and to facilitate the flow of green and transition funds. In this context, HaxiTAG ESG Solution has proposed a comprehensive and innovative framework aimed at building an advanced ESG data ecosystem through the power of intelligent technology and industry partnerships.
Firstly, it is imperative to recognize that despite the growing demand for ESG data, the available data falls far short of requirements. Enterprises require accurate data to assess their carbon footprint, historical carbon emissions, and whether they are meeting predefined transition targets. Simultaneously, understanding potential climate-related risks for assets susceptible to climate change is crucial. However, the process of acquiring ESG data is often manual, laborious, and costly, with ESG data verification still in its infancy, impacting the credibility of reporting.
In addressing these challenges, FinTech can play a crucial role. By directly connecting to various systems of sustainable projects, such as electricity, water resources, office space, production, supply chain, human resources, and waste management systems through Application Programming Interfaces (APIs), FinTech firms offer more efficient, direct, and economical data acquisition solutions. Furthermore, distributed ledger technology is being explored to address issues of data verifiability and traceability. Regarding reporting, automated tools provide flexibility to adapt to different reporting standards.
HaxiTAG ESG Solution addresses specific industry ESG data and financing challenges through four digital utilities:
Data Cleansing and Auditing:
Centralizing and organizing ESG data of enterprises and their supply chains to provide a foundation for data assessment.
Management Analysis:
Establishing ESG as a means of assessing, monitoring, analyzing, and reporting on enterprise partners.
Reporting Disclosure:
Meeting broader reporting needs of enterprises, small and medium-sized businesses, supply chain partners, and suppliers through ESG disclosure portals.
Modeling Analysis and Knowledge Sharing:
Utilizing industry data for ESG policy sharing and modeling analysis.
Additionally, the Data Connection Center integrates ESG data from multiple sources, including major ESG data providers, utilities companies, sectoral platforms, and the ESG data registry, providing controlled access to these sources. Moreover, through data analytics tools, new insights can be generated to support investment and financing decisions.
The ESG Digital Marketplace connect ESG technology providers with Investment in carbon assets, investors, financial institutions, and enterprises, facilitating partnerships and investments in ESG solutions.
HaxiTAG ESG Solution provides open-ended, collaborative platform tools for companies, banks, and financial institutions, enabling them to better understand and assess ESG issues and collaborate effectively with global stakeholders. Through these innovative approaches and technologies, HaxiTAG plays a role in advancing high-quality ESG data, which will have a significant impact on achieving sustainable development goals. As ESG continues to grow, the role of FinTech will become more pronounced, serving as a key driver in advancing the quality and transparency of ESG data.