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Permutable AI Advocates for Government-Led ESG Standardization in South East Asia

Permutable AI Advocates for Government-Led ESG Standardization in South East Asia

Leading AI-driven analytics firm Permutable AI takes a prominent role in addressing the escalating importance of Environmental, Social, and Governance (ESG) considerations within the business landscape. Following S&P’s recent decision to exclude ESG indicators from credit reports, discussions on the urgency of standardized ESG ratings have surged. Permutable AI’s CEO, Wilson Chan, and Regional Director for Asia, Manuela Moollan, provide key insights into this pressing matter, emphasizing the pivotal role of ESG ratings in holding companies accountable for their environmental and social impacts. The firm highlights the need for regulatory standardization, asserting that government-led efforts are essential for creating transparent and unified ESG standards.

In a dynamic business environment where Environmental, Social, and Governance (ESG) considerations are gaining increasing prominence, Permutable AI, a leading AI-driven analytics firm, is at the forefront of the conversation. 

The recent announcement by S&P regarding their decision to exclude ESG indicators from their credit reports has ignited discussions on the need for standardized ESG ratings. Permutable AI’s CEO, Wilson Chan, and Manuela Moollan, Regional Director for Asia, have shared their perspectives on this crucial matter.

Why ESG Ratings Matter

Wilson Chan, CEO and Co-Founder of Permutable AI, emphasized the significance of ESG ratings, stating, “ESG ratings play a pivotal role in holding companies accountable for their environmental and social impacts. They are guiding beacons for investors and drive businesses towards more sustainable practices.”

The Challenge of ESG Rating Diversity

Discussing the challenges surrounding ESG ratings, Chan added, “The lack of uniformity and standardization in the ESG rating landscape is a formidable challenge. This diversity of interpretations makes it exceptionally challenging to compare one company’s ESG performance with another’s.”

The Case for Regulatory Standardization

Permutable AI firmly believes in the necessity of regulatory standardization. Wilson Chan stated, “ESG ratings should not originate solely from private entities. Instead, regulators and governmental organisations should be at the forefront of establishing a unified and transparent standard. Standardization is paramount because it provides a level playing field for businesses, ensures the reliability of ratings, and facilitates more accurate comparisons.”

Reliability and Transparency of Permutable AI’s Data

A distinguishing factor of Permutable AI’s approach is the real-time and progressive nature of their data. Wilson Chan highlighted this, saying, “Unlike rating agencies, our data is real-time and shows progress over time. This real-time insight allows businesses and investors to track ESG performance and improvements continuously.”

The Role of South East Asia in Standardization

Manuela Moollan, Regional Director for Asia at Permutable AI, discussed the regional perspective, stating, “In South East Asia, regions such as Hong Kong and Singapore are actively developing principles for climate transition plans and green taxonomies to support standardization efforts. These initiatives mark a significant step towards regional alignment with international ESG standards.”

She continues, “Since the ASEAN’s sustainable finance taxonomy publication in 2021, ASEAN countries have been developing their own taxonomies to be interoperable with international standards. Taxonomies are key to reduce divergence and inconsistencies in ESG ratings. With standardization in mind, ESG data providers and ESG ratings will be at the forefront of risk evaluation in the banking sector and determining capital requirements to reflect ESG risk.”

S&P’s Decision and Permutable AI’s Unique Perspective

Commenting on S&P’s recent decision to temporarily withdraw ESG ratings, Wilson Chan remarked, “This move is prudent. It acknowledges the significant variance between different rating providers and underscores the importance of reliability in ESG ratings. Reintroducing ESG ratings once standardized and reliable frameworks are in place would be a sensible course of action.”

Permutable AI is a leading AI-driven analytics firm that specializes in providing real-time, reliable ESG data and insights to businesses and investors. With a mission to promote sustainability and responsible business practices, Permutable AI empowers stakeholders with the information needed to make informed decisions in an ever-evolving global landscape.

In a significant move to expand its presence and enhance its commitment to the Asian market, Permutable AI recently appointed Manuela Moollan as the Regional Head of Asia. This strategic appointment signifies Permutable AI’s dedication to serving the unique ESG needs of the Asian business landscape.

Talya Stone, talya@permutable.ai

This press release has also been published on VRITIMES

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