Disrupting ESG: The Need for Transparency and Openness with Frank Meehan from OpenESG

Jun 3, 2023

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Introduction:

Host Tarmo Virki welcomes listeners to "NatureBacked," a show discussing the green economy.
Guest speaker Frank Meehan from openESG, joins the conversation. Frank Meehan is a seasoned investor and co-founder of SPARKlabs, an investment firm focused on climate, food, and agricultural tech solutions. He also co-founded Equilibrium.ai, acquired by Fiscal Note, and works with openESG, a company transforming ESG ratings and showcasing systems.

Discussion Highlights:

Frank's Background in ESG:

Frank shares his experience in the ESG space, spanning seven years of investing in climate, food, and agriculture.
He highlights the evolution of his firm and his involvement in managing global ESG data through equilibrium.ai.

The Current State of ESG:

Frank observes a significant focus on environmental sustainability and explains how even companies seemingly disconnected from ESG are actively pursuing sustainable practices.
He mentions the need for transparency and highlights a case involving child labour in a chemical plant and the impact on Blackstone's reputation.
The discussion emphasizes the existing challenges in the ESG space, including the influence of the old-fashioned certification process and lack of transparency.

The Need for Change and Disruption:

Frank draws parallels between the ESG space and the taxi industry before Uber, emphasizing the closed-shop mentality and lack of transparency.
Frank discusses the importance of transparency, openness, and rewarding positive progress in the ESG industry.
They mention the role of media in exposing greenwashing practices and the potential for journalists to utilize public ESG data for impactful reporting.

Introduction to openESG and Its vision:

Frank explains the purpose of openESG, which aims to revolutionize ESG ratings and make them dynamic, open, and free.
He describes the role of AI and web 3.0 principles in the openESG system, ensuring transparency, real-time data, and verifiability.
The conversation highlights the importance of accelerating positive change in ESG and the role of data in measuring and improving sustainability practices.

Challenges and Opportunities Ahead:

The discussion touches on the challenges openESG may face, with Frank expressing the hope to keep up with the evolving industry.
They emphasize the need to transition from manual, form-based systems to digital, AI-driven processes for faster and more accurate ESG assessments.

Conclusion:

Frank and Tarmo conclude the discussion by reiterating the need for change, transparency, and openness in the ESG space.
They discuss the potential positive impact of openESG and the industry's growing recognition of the importance of ESG principles.

In the NatureBacked podcast, we talk with investors and entrepreneurs about their vision of the new green world.