Data gaps

Data gaps are particularly substantial and pressing for forward-looking risk information.

And where forward-looking information exists, it is largely based on (i) announced intentions, or (ii) scenarios for which relative likelihood information currently does not exist. Moreover, numerous organizations have created their own scenario sets. Users of forward-looking information do not know how to evaluate the range of different scenarios, and which scenarios should be given more attention, and which less attention.

NGFS (2021) Progress report on bridging data gaps

Stakeholders report the need for more forward-looking data and granular data.

While acknowledging the need for a forward-looking perspective, stakeholders still largely rely on metrics that are backward-looking in nature. …Stakeholders have pointed out that they cannot rely on such metrics alone. They also need to finance transition and analyse the pathways to climate goals over time by also using forwardlooking metrics.

NGFS (2022) Final report on bridging data gaps

[Credit Rating Agencies] also reported that the biggest gaps are in the forward-looking data, which are essential for consistency of accounting treatments and scenario assumptions.

The importance of forward-looking data is stressed by the stakeholders.

Recommendation 3: Develop well-defined and decision-useful metrics, and methodological standards. To further advance this goal, there is a need to substantially increase the harmonisation of forward-looking metrics.

Kim Kaivanto
Kim Kaivanto
Senior Lecturer in Economics

economics and finance, normative and behavioural, academic and applied