By Mark Tabor, Principal Consultant, Ordnance Survey
In today’s rapidly evolving financial services sector, understanding the connection between location data and Earth Observation (EO) technologies is crucial. Financial institutions face an increasingly complex landscape of environmental, social, and governance (ESG) requirements, with sustainability now a moral responsibility. However, a lack of knowledge surrounding asset location has left markets disconnected from the physical world they aim to invest in, hindering the effective use of EO data for risk evaluation and decision-making.
Through the UK Space Agency’s Unlocking Space for Business programme, an Ordnance Survey (OS) feasibility study has revealed how precise and comprehensive location data can lead to more informed investment decisions, particularly in sustainability and biodiversity net gain.
Despite the potential opportunities, there are significant barriers to overcome, including a lack of trust in location-based assessments and limited awareness of the value that space-derived insights can provide. The Financial Services sector is currently spending millions on trying to navigate the data landscape with limited success. Authoritative data platforms, like the EO DataHub, which is a single portal for accessing and processing satellite data, could be the catalyst for the widespread adoption of EO technologies across the financial sector, providing clarity of where assets are located for risk management and sustainability efforts.
By combining EO and location data, financial institutions can enhance due diligence, portfolio monitoring, and predictive analytics, transforming how risks are managed across sectors like real estate, agriculture, utilities, and manufacturing.
There are significant gaps in understanding EO data capabilities. However, with trusted organisations like OS providing reliable data, institutions can unlock real value. EO data enables tracking investments, identifying vulnerabilities, and making critical decisions—such as funding and managing the transition to climate-resilient assets or understanding the risks of climate-related effects.
Financial services companies have a major opportunity to use EO data for compliance monitoring, regulatory reporting, and project finance. Geospatial insights can help pinpoint environmental risks, monitor changes over time, and make portfolios more resilient to transition risks. This not only offers a competitive edge in ESG investing but also protects businesses from the growing threats posed by climate change and nature-related risks.
The financial sector is witnessing a shift towards a new generation of investors focused on sustainable models. This has created an increased demand for sustainability-linked investments, requiring objective evidence of environmental and social impact. EO data, when combined with geospatial insights, provides the validation needed to give investors confidence in portfolio performance and ESG compliance.
Integrating satellite EO data with location intelligence will enable financial institutions to align their operations with net-zero targets, optimise resource allocation, and manage investments more sustainably. From monitoring greenhouse gas emissions to preventing environmental degradation like deforestation, the potential for transformative change is enormous.
Sustainable investment in sectors like energy supply chains and metal mining can also be supported by EO data, which helps monitor environmental impact and ensures compliance with sustainability standards. Real estate asset management can be enhanced by integrating microclimate insights and other geospatial data into property valuation and market trend analysis. Furthermore, EO data combined with Automatic Identification System (AIS) location technology offers a comprehensive view of global trade and supply chain dynamics, including the ability to monitor shipping routes, emissions, commodities, and fleets. This will optimise operations, direct ESG investments, and support policy development.
The future of the financial services sector will greatly benefit from leveraging geospatial and EO data. Addressing current knowledge gaps, promoting data standardisation, and building trust in EO-derived insights will enable the financial industry to make more informed, sustainable decisions. This will not only help mitigate environmental risks but also create new opportunities for nature-positive investments.
As the financial landscape continues to evolve, integrating precise location data with EO technologies presents a clear path forward—driving sustainability, improving risk management, and building a more resilient, future-proof financial system.
Link to the report here.