On June 23, the Financial Conduct Authority (FCA) published an Evaluation Report of the digital sandbox sustainability pilot. The purpose of this pilot was to support innovation, addressing market challenges using technology to:
Enable transparency in disclosure and reporting on sustainability, particularly on corporate assets and their supply chains
Automate the assurance of a listed issuer’s ESG data and validation of its ESG-labelled corporate bond issuance
Help consumers understand ESG characteristics of products and providers
Provide visibility around alternatives aligned with their needs and preferences
These challenges were exacerbated by the Covid-19 pandemic.
The study collected participant feedback on collaboration, data and platform. In addition, an evaluation assessed the success of the pilot based on the role encouraging innovation, enabling market readiness, improving development, fostering collaboration and thought leadership.
While feedback indicated different areas of improvement, overall, the paper highlighted the benefits of collaboration and data access to stimulating innovation.