Raiffeisen Tech Meet Up #9: ESG Data in Banking - Managing Data and Unlocking Insights

The session was led by Jakub Ratajewicz, Business Analyst at Raiffeisen Tech, who guided participants through the entire ESG data lifecycle and explained why managing ESG information is far more complex than simply collecting a set of sustainability metrics.

One of the key takeaways was that ESG data comes in many different forms. It includes measurable indicators such as greenhouse gas emissions, energy consumption, waste generation, and water usage, but also qualitative information regarding governance structures, policies, risk management frameworks, and stakeholder engagement.

As organizations become subject to increasingly detailed reporting requirements, collecting this information consistently and accurately has become a major challenge.

A significant part of the session focused on the complexity of ESG data itself.

Unlike traditional financial data, ESG information is often dispersed across multiple systems, departments, suppliers, and external sources. Different organizations may report similar indicators using different methodologies, units of measurement, or reporting frameworks.

Participants learned that one of the biggest challenges is ensuring data consistency and comparability. ESG reporting frequently requires combining information from:

• operational systems,
• supplier questionnaires,
• audits,
• external databases,
• IoT devices and sensors,
• publicly available reports.

The process is further complicated by constantly evolving regulations and reporting standards, requiring organizations to regularly adapt their data collection and validation processes.

One particularly interesting topic discussed during the meetup was the concept of financed emissions.

While companies typically measure emissions generated directly by their own operations, financial institutions must often consider a broader perspective.

Banks and asset managers need to understand not only their own environmental footprint but also the emissions associated with the companies and projects they finance. These financed emissions can represent a significant proportion of the overall environmental impact connected to financial activities and play an increasingly important role in sustainability reporting and risk assessment.

This highlights a key reality of ESG data management: understanding sustainability often requires looking beyond direct business operations and examining entire value chains and investment portfolios.

Another important discussion revolved around the reliability of ESG reporting.

While companies increasingly publish sustainability reports and obtain external certifications, the session emphasized that compliance with reporting requirements does not automatically guarantee a complete picture of organizational practices.

Using real-world examples, Jakub demonstrated why ESG data should always be interpreted alongside broader due diligence processes, legal reviews, compliance checks, and stakeholder assessments.

This perspective underlined an important point: ESG reporting is a valuable tool for transparency, but effective risk management requires combining multiple sources of information and maintaining a critical approach to data evaluation.

The meetup also explored practical approaches to organizing ESG data within an organization.

Participants were introduced to a typical data lifecycle that includes:

1. Data collection
2. Data processing
3. Validation and quality control
4. Analysis
5. Reporting and publication

A recurring theme throughout the session was the importance of flexibility. As regulations continue to evolve and business requirements change, organizations need solutions that can adapt quickly to new reporting obligations and stakeholder expectations.

Rather than investing immediately in the most sophisticated technologies available, the session encouraged companies to first understand their actual business needs, identify bottlenecks, and determine where automation can bring the greatest value.

While ESG reporting is often associated with regulatory compliance, the session highlighted its broader strategic importance.

Reliable ESG data supports:

• regulatory disclosures,
• risk management processes,
• customer and portfolio assessments,
• benchmarking activities,
• sustainability-linked financial products,
• long-term business decision-making.

As investors, customers, and regulators increasingly expect transparency, organizations that can effectively manage and communicate ESG information gain a stronger position in the market.

The session also demonstrated how ESG data is becoming an essential component of modern banking, helping institutions better understand risks, identify opportunities, and respond to changing stakeholder expectations.