Inaugural Report from 'Investors for a Sustainable Digital Economy' Highlights Risks from Data Use and Investors' Role in Mitigating Consequences

LONDON, Feb. 15, 2022 /PRNewswire/ -- Investors for a Sustainable Digital Economy ("ISDE"), a network of institutional investment managers and asset owners seeking to engage with and steward companies through digital governance best practices, today announced the launch of its inaugural report, "Considerations of Data Use for Global Investors in a Digital Age." The report extensively reviews research across data use, as well as emerging best practices within this critical area, distilling systematic causes and effects related to data use practices within corporations. It also underscores vital investment-related issues, offering strategies that can ameliorate corporate data use practices.

By 2025, the International Data Corporation ("IDC") estimates that there will be 175 zettabytes of data in the global datasphere, making it more important than ever to grasp the impacts of digital ethics. As the use of data rises across industries and functions, the report sheds light on the various touchpoints of data handling inside organizations.

The report then examines case studies of risks arising from data mishandling and consolidates best practices in a practical toolkit for future deployment. It clarifies how investors can play a meaningful role in stewarding their portfolio companies to optimize outcomes with respect to benefits and harms associated with data use.

"This literature review report uniquely encapsulates an investor viewpoint on data use, and its implications for their portfolio companies. Furthermore, it reinforces their role as stewards of capital in securing a sustainable future for broader stakeholders." said Di Rifai, Founder of ISDE. "The report was a stepping stone towards building a systematic framework such that ISDE members can meaningfully engage with their portfolio companies regarding tech ethics. Through ISDE, we are calling on the investment community to address the pressing need for ethical digital governance, at an inflection point for digitalization."

Current ISDE members from asset management firms include Baillie Gifford, Sands Capital and Zouk Capital, as well as institutional asset owners including the Church Commissioners for England and Ethos Foundation.

Brian Christiansen, Director of Stewardship at Sands Capital, added, "The investment risks associated with potential mishandling of data are too great to ignore and forward-looking investors must recognize the opportunity to guide corporations to set clear guidelines for appropriate data use. We are proud to be a part of this important effort in paving a stewardship pathway for investors to shape the future of an ethical digital economy."

About ISDE
CFU, founded in 2018, is a non-profit organization committed to championing best practice in technology use, and equipping investors with the expertise, insights and tools to enable effective stewardship of the companies in which they invest. CFU advises asset owners and managers across public and private markets totaling circa $1tln Assets Under Management. CFU believes that ethical use of technology is essential to ensuring a sustainable, equitable digital transformation that works for a wide range of stakeholders.

Visit https://creatingfutureus.org/ to learn more.

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SOURCE Creating Future Us