- The Centre operates as part of the European Chair for Digital Regulation, an initiative co-directed by Pérez-Llorca and the Universidad Carlos III de Madrid
Pérez-Llorca and Universidad Carlos III de Madrid held a new session of the Pérez-Llorca/Universidad Carlos III European Centre for Digital Regulation which addressed the challenges and opportunities associated with the use of data in the field of sustainability.
Raúl Rubio, Intellectual Property and Technology partner at Pérez-Llorca, and David Ramos, Professor of Commercial Law at the Universidad Carlos III, opened the session by highlighting the Centre’s goal as a project aimed at generating technical and legal knowledge and promoting dialogue between the private sector, academia and public institutions, in order to address the regulatory challenges of the digital environment and contribute to the creation of more effective and sustainable regulations. Rubio stressed the importance of creating communities and forums for discussion with a multidisciplinary vision, and noted that “in an era of uncertainty such as the one we are living in, adequate regulation can provide greater certainty and guarantee transparency.” Ramos said that “when we talk about sustainability and long-term value creation, we’re talking about information, information that allows us to be more efficient, more productive and reduce risks.”
Sophie Marie Rathmes, Policy Officer in Sustainable Finance at the European Commission, then addressed the main challenges around sustainability data services from an institutional perspective. Rathmes stressed that high-quality, standardised and reliable data is essential for creating value opportunities and mitigating risks. In this regard, she gave a very interesting insight into the role of rules such as the Taxonomy Regulation, the CSRD Directive, and the Green Bond Regulation, how they interconnect, and, above all, how they contribute to creating a data ecosystem, connecting sustainable finance initiatives with digitisation and access to data initiatives. She then highlighted the Omnibus Regulation as a tool to reduce the administrative burden and simplify access to these platforms, while remaining committed to sustainability, offering very insightful thoughts on the regulatory proposals and the legislative approach. “Europe must continue to be a benchmark for regulatory innovation and sustainability,” she concluded.
This was followed by a panel discussion on the life cycle of sustainability data and the ecosystem of actors involved in its management, moderated by Raúl Rubio and featuring Itziar Castelló Molina, Reader in Sustainability and Digital Economy at Bayes Business School; José María de Paz, ESG Criteria and Climate Change Regulation partner at Pérez-Llorca; Sara Rodríguez, Global Head of Corporate Sustainability at Abertis; and the aforementioned Sophie Marie Rathmes.
Sara Rodriguez began her speech by addressing the central role of data in the internal transformation of companies and underlined its dual role: responding to external demands and guiding operational improvement. “Anything that is not measured cannot be improved,” said Rodríguez, who focused on the importance of building a common language within organisations and involving all professionals in this process, especially when objectives such as decarbonisation are linked to remuneration systems. She provided concrete examples of where this work is taking place, where there are challenges, and offered a critical perspective on the regulatory framework, which covers many “items”, but can make it difficult to build the company’s “narrative”.
Itziar Castelló reinforced this point by placing it in the broader context of a crisis of legitimacy surrounding sustainability. She noted that this legitimacy has been undermined by political factors and the spread of misleading narratives. For the past five years, the dominant discourse around ESG has promoted the idea that financial markets would lead the transition toward sustainability. This belief was reinforced by claims that ESG investments offered higher returns. However, about a year ago, enthusiasm within the financial sector began to wane. Castelló highlighted the critical role of regulatory bodies in restoring credibility to net-zero targets. This process of re-legitimisation, she argued, must be underpinned by reliable data and robust assurance mechanisms. “We must foster a narrative of accountability at all levels, based on processes of legitimisation and credibility,” she said.
From a legal perspective, José María de Paz brought up the need to redefine companies’ approach to non-financial reporting. He stressed the importance of integrating sustainability into corporate strategy and governance, noting that “it is not just about reporting, but about making better decisions, with the Board of Directors as a central actor in the process.” He also called for greater regulatory flexibility for companies to design their own processes without disengaging from common goals, and the importance of being able to build a narrative, but a true narrative.
Rathmes ended the first panel by stressing that many companies face difficulties in implementing the current requirements. She stated that the Omnibus Regulation seeks to simplify these processes without sacrificing climate ambition. “Our aim is to create a collaborative space that facilitates a sustainable transition and avoids regulatory uncertainty,” she concluded.
David Ramos gave way to a second panel focused on the roles and functions of the actors in the sustainability reporting ecosystem, with the participation of Edgar Löw, professor of Accounting Practice at the Frankfurt School of Finance & Management; Natalia Valls, head of Strategic Sustainability Reporting at CaixaBank; Nejc Smole, representative of the European Central Bank; and Nicholas Dodd, expert in climate finance and energy transition at RMI.
Natalia Valls noted the difficulty of complying with the disclosure requirements for ESG standards and rating agencies, providing noteworthy examples, and pointing out the need for standardisation and bridging the gap between voluntary and regulated measures. “Standardisation is key, but there are still significant gaps that hamper the comparability of information,” she stated.
Nejc Smole explained the approach of the European Central Bank, which has already integrated climate risk into its supervisory framework. He stressed that data must be complete, reliable and contextualised, warning that “quality is more important than quantity: understanding the context behind the data is essential for effective banking supervision,” while sharing some very interesting examples in the field of mortgage lending and energy performance certificates.
Nicholas Dodd explained the challenges in applying the PACTA methodology for climate risk and transition assessment, and advocated the use of forward-looking metrics to anticipate risks and target investments towards climate goals. “Energy transformation is not only achieved with commitments, but with informed decisions based on reliable, open and verifiable data,” he said. He also suggested that sustainability requires new, forward-looking metrics; data should not be a barrier, but a bridge to effective and measurable climate action.
Edgar Löw concluded the second panel by discussing the role of the auditor in the face of the growing demand for sustainability information from the financial sector, and gave examples based on his experience of the difficulties faced by auditors, especially in sustainability reporting. He emphasised the importance of ensuring data quality without creating excessive burdens. “Auditors must ensure quality without imposing unnecessary burdens in a still immature and complex environment,” he concluded.
