Knowledge Bank
The TDFD Knowledge Bank consists of the research reports, external resources as well as industry frameworks and regulation on digital-related risks and opportunities.
Explore the Knowledge Bank to grow your understanding of why and how to integrate digital risks and opportunities into decision making. New content is added continuously.
If you have suggestions for new or upcoming relevant content to include, we invite you to email us at partnership@dqinstitute.org
Digital-ESG Framework
The Digital-ESG framework is designed to serve the digital economy. It is not designed to replace the existing ESG framework, but to serve as an extra layer on it.
Although commonly adopted ESG frameworks and standards have advanced the environmental agenda, there have been concerns raised about the following points: 1) their guidelines are in general risk-focused and downplay the opportunities that can potentially be created by industries; 2) their guidelines along the social and governance dimensions may not be universally applicable due to cultural differences across different regions and cultures, and 3) their guidelines on the disclosure of social and business risks related to the world’s rapid digital transformation remain inadequate.
Digital-ESG aims to compensate for those areas where ESG falls short—especially in managing
- 1) digital-related risks with greater focuses on the social (S) and governance (G) dimensions and
- 2) digital-related opportunities through cross-dimensional technologies to enhance environmental sustainability (E).
Considering that all digital- and technological-related matters are universal in nature, the enhancement of S and G dimensions with digital-related risks add values to the current ESG Framework with less controversial, culture-neutral, and more objective standards for businesses.
Digital-ESG Assessment & Reporting Standards
Digital-ESG Assessment & Reporting standards provides a comprehensive checklist that includes assessment and reporting of digital-related issues along with Environment, Social and Governance related issues.
This tool allows companies and investment communities to address digital-related risks while fostering “human-centered technology” in the AI age.
Considering that all digital- and technological-related matters are universal in nature, the enhancement of S and G dimensions with digital-related risks adds value to the current ESG Framework with less controversial, culture-neutral, and more objective standards for businesses.
Digital-ESG Assessment & Reporting Standards has a systemic structure which provides the methodology and tools for the impact measurement of a company’s performance across all Digital-ESG criteria. It is comprised of a set of barometers measuring its digital capabilities to mitigate digital-related risks while maximizing digital-related opportunities.
Digital-ESG Case Study:
Energy Sector
Climate change is a global existential threat. More than 70 countries covering about 76% of global emissions, as well as the world’s largest corporations, have committed to achieve net zero emissions within the next few decades. How can these net zero pledges be translated into tangible actions peacefully, inclusively, and practically?
This Digital-ESG Case Study for the Energy Sector examined how Aramco’s sustainability goals can be better served by reconceiving their Circular Carbon Economy model as a Cross Carbon Economy (CCE) model. The CCE emphasizes creating value from carbon waste and does so in a way that is more equitable to the world.
This approach will provide practical insights and valuable tools to all stakeholders in the energy sector to shape a global energy system that better balances affordable energy, energy security, and net zero goals.
This Case Study was published at the roundtable event at the World Economic Forum Annual Meeting 2023, Davos.