FRC Lab reports on ESG data production and disclosure of digital security risks

In August, the FRC Lab published two reports:

• Improving ESG data production – This report considers the current landscape and challenges for the production of ESG data and sets out actions that companies could take to improve how this data is collected. It is built around three elements – what motivates companies to collate ESG data, how ESG data is collected and how the data collected is used internally. The Lab will consider separately how ESG data is distributed and used externally.
• Digital Security Risk Disclosure – This report considers current practice in relation to the disclosure of digital security risks and how disclosures could be improved in order to better serve the needs of investors. The report observes that much disclosure in this area is boilerplate. The Lab published a best practice example bank alongside the report to try and facilitate improved disclosures.