Scientific Beta

IPE: "What trust would one put in financial information that is solely reserved for investors and not published, that no independent analyst could challenge, given that the regulator would have no way of guaranteeing its veracity either? (...) There is in fact no serious study on the competitive restrictions and costs involved in access to data that is often held by a small number of actors who, moreover, are engaged in investment management or index offerings themselves."

IPE 20/01/2023

By Noël Amenc, senior advisor at Scientific Beta, associate professor of finance at EDHEC Business School, and affiliate member of EDHEC-Risk Climate Impact Institute

"(...) What trust would one put in financial information that is solely reserved for investors and not published, that no independent analyst could challenge, given that the regulator would have no way of guaranteeing its veracity either? (...) There is in fact no serious study on the competitive restrictions and costs involved in access to data that is often held by a small number of actors who, moreover, are engaged in investment management or index offerings themselves. Even more surprising: even though extensive serious academic research shows the lack of reliability of ESG indicators, these are a core part of current or forthcoming regulation. Finally, there is no real proposal for genuine precautions around the use of data for portfolio construction and reporting. (...)"