Sustainability strategy supported by master data from ESG performance of the Colombian financial system

Abstract

The need to contribute to the transformation of the financial system requires new perspectives to be developed and combined with modern technologies. In this regard, it is important to recognize how data can be used alongside a new driver of change, such as sustainability, to increase the societal impact of banking. The ESG master data management guide for business intelligence in Colombian banks was developed through a practical approach to applying business intelligence concepts and DAMA fundamentals. This enables the identification of focal points for transformation and the implementation of market-leading practices to enhance decision-making in one of the sector's key areas of transformation: sustainability. This is important not only from a business strategy perspective, but also as a fundamental operational element. The article outlines the factors that have motivated banks to incorporate sustainability criteria throughout their value chains. It describes the main challenges that the sector faces in adopting reporting standards and in extracting and consolidating sustainability strategy-related data. Finally, it presents an analysis of a sample of banks, highlighting how information based on master data reflects strategic sustainability efforts. It concludes with some general aspects of the sector's needs and targeted uses to achieve ESG transformation. The article's main contribution is the development of a guide for using master data in financial systems to promote compliance with sustainability-related sustainable development goals (SDGs).