At CeFPro’s Sustainable Finance Summit, Ying Poikonen, Head of the Modeling Group at SMBC, shared candid insights into the data hurdles facing ESG and climate risk professionals. Her team’s journey—from limited datasets to advanced modelling—reflects the broader evolution of the industry. Regulations like CSRD have intensified the need for transparent, high-quality data, yet inconsistencies and availability gaps persist.

Ying highlighted how institutions like SMBC are investing time and effort into sourcing, validating, and improving ESG data. The shift, she explained, is not just about compliance—it’s about building reliable models that can underpin disclosures, stress testing, and long-term risk planning. Collaboration across institutions is crucial, as the quality of climate risk data is a collective responsibility.

Artificial intelligence is now accelerating progress. From scraping public sources to automating data collection, AI is reducing manual errors and enabling greater scale. Ying noted that a growing ecosystem of AI-driven tools is making ESG data more auditable and transparent—essential traits in the face of rising regulatory scrutiny. However, with great capability comes risk, and she stressed the need for strong governance frameworks to oversee AI use.

Looking ahead, Ying believes AI will become foundational in ESG, rather than a feature. In five years, she predicts it will drive most of the processes currently seen as cutting-edge. Her advice to both veterans and newcomers in the field: keep showing up, keep learning, and keep exchanging ideas. Events like the Sustainable Finance Summit remain essential spaces to collaborate, challenge assumptions, and shape the future of sustainable finance together.