Riga – Vilnius – Tallin – Responding to the growing demand for standardization and simplification in ESG (environmental, social, and governance) data collection processes, Baltic banking associations and financial service providers have joined forces to create the Unified cross-Baltic ESG Client Questionnaire. This initiative aims to streamline ESG data collection and enhance the sustainability assessment process for companies operating within the Baltic region.

“The unified ESG customer questionnaire will serve as a guide for companies, outlining the most common questions that banks will pose to evaluate the sustainability profile of their clients. It’s important to note that not all questions will be answered immediately; however, companies should diligently prepare their answers. While banks may employ varied internal methodologies for assessing customer sustainability, the questionnaire’s development aims to help companies prioritize the key issues financial institutions will consider regarding their sustainability efforts,” explains Irina Kuzmina, head of the Sustainable Financing Working Group at the Finance Latvia Association.

The Unified ESG Client Questionnaire addresses multiple key objectives:

1. Facilitating Trustworthy Data Availability: The adoption of this questionnaire by businesses and financial institutions will heighten awareness of ESG topics and facilitate related data availability and quality. It improves ESG data collection practices to meet the banking supervisory expectations for client ESG evaluation following methodologies developed by each of the bank, thereby helping businesses adhere to the evolving financial and regulatory landscape.
2. Equipping for Increasing ESG Disclosure Demands: With a rising call for ESG transparency from a wide array of stakeholders – including regulators, investors, and business partners – this questionnaire may serve as a starting tool for establishing reporting readiness. It enables companies to systematically assess their sustainability performance and be better prepared to showcase their environmental, social, and governance efforts when required.
3. Educating and Promoting Clarity: The initiative to develop a standardized ESG data request form among participating banks seeks to eliminate the guesswork regarding the data required by financial institutions. This questionnaire serves as a guide, outlining the most typical questions that businesses are expected to answer or to work on if immediate answers are not available yet. Aimed at enhancing awareness, this initiative encourages businesses to critically assess their sustainability efforts, fostering a more informed approach to responsible business conduct.

This collective action underscores a shared commitment among the Finance Latvia, Lithuanian Banking Association and Estonian Banking Associationto support companies in meeting the increasing demand for ESG compliance and transparency. Proper evaluation and implementation of ESG criteria significantly contribute to sustainable financial markets, attracting investments from both forward-thinking clients and institutional funds focusing on ESG-compliant portfolios.

With the introduction of the Unified ESG Client Questionnaire, Baltic companies are now poised to navigate their ESG reporting process with greater simplicity, accuracy, and efficiency. The scope of the questionnaire aims to cover the most significant part of the necessary information, however, the companies should be ready that additional specific data could be required depending on each bank’s individual assessment practices and business sector specific needs. Interested parties can inquire with their respective banks to learn about the customized implementation approach specific to their needs.

The Unified ESG Client Questionnaire is available here: https://ej.uz/ESG_Client_Questionnaire

For more information about the Unified ESG Client Questionnaire and how it can benefit your business, please get in touch with Finance Latvia Association.