The demand for trusted data will only grow as regulators strengthen reporting and disclosure requirements. Yet, the availability of good data remains a big challenge. The process of ESG data acquisition is manual, cumbersome and costly. There is also lack of transparency in the verification and reporting process. Technology can be a game changer in addressing these data challenges. First, the problem of data acquisition. FinTechs are offering solutions that connect directly via Application Programming Interfaces (APIs) to existing systems, such as waste management systems, to retrieve relevant environmental and energy consumption data more efficiently. Financial institutions are exploring the use of IoT devices and sensors to measure directly at source, carbon emissions, energy consumption, and pollution. Satellite imagery is being used to track the progress of reforestation and carbon sequestration projects, which enables nature-based solutions and offerings. Second, the problem of data provenance. Here, distributed ledger technology is being considered as a way to maintain provenance 1/3  BIS central bankers' speeches  and traceability in the data. For example, IBM’s Food Trust uses blockchain to connect participants across the food ecosystem, such as growers, processors and retailers, with data collected along the supply chain. This allows them to ensure that food safety protocols and sustainable food practices are adopted at each stage of the food chain. It also allows them to trace any food fraud incidents or food safety breaches back to their source.

Climate risk is a real threat: financial institutions should have the conviction to want to understand the environmental risks in their portfolios and to mitigate these risks. It is imperative that financial institutions step up efforts to collect the data that are necessary to mitigate their physical and transition risks as soon as possible. Second, financial institutions need greater clarity on the ESG data they need. The Network for Greening the Financial System (NGFS) has recently published a progress report on bridging data gaps. MAS agrees with the recommended approach, which is to first identify the stakeholders and 2/3  BIS central bankers' speeches  use cases, and then define the metrics and data requirements. In the absence of a use case driven approach, technology will remain a solution looking for a problem to solve. In Singapore, MAS is working with our financial institutions, solutions and data partners to pilot some use cases so that we can collectively learn, adapt, and grow in our ability to define the right metrics for ESG measurement. MAS has launched, together with the industry, Project Greenprint – a technology platform to support the green finance ecosystem. The project will identify use cases where technology can help to mobilise capital for green projects, monitor commitments to emissions reductions, and quantify the impact of abatement efforts. We look forward to collaborating with more international financial institutions and solution providers in this effort. Third, we need to develop methodologies to translate raw data into quantifiable assessments of climate-related risks.