LUKE O’LEARY | Associate, White & Case LLP
MINDY HAUMAN | Professional Support Counsel, White & Case LLP

In the age of big data and globalization, regulation is increasing in both scope and scale. Much of the recent regulation in the E.U. has focused on ESG investments and compliance, with a focus on increased data reporting requirements to promote transparency. This suite of regulations will pose a real challenge to financial market participants. This article focuses on some of the recent E.U. regulations regarding ESG investment, examines how it will impact the market, and proposes a solution to the challenge.

Integrating data analytics into the regulatory and business framework will enable artificial intelligence and machine learning to assist companies and investors with compliance. It will also assist in providing a reliable, objective standard to promote comparability. Finally, this article will discuss how the implementation of some E.U. legislations have enabled fintech businesses with ESG goals to disrupt financial markets.