ESG SOLUTION

AI for sustainable finance

Capital markets are rapidly moving to acknowledge, understand & incorporate Environmental, Social, and Governance factors

But translating this into reliable action is compromised as ESG data is often noisy and unreliable

50%

46%

Of asset managers see a lack of forward-looking disclosure as limiting the value of ESG reporting

View the lack of real-time information as a limitation on the value of ESG data

Access to and deployment of data remains the biggest challenge for asset managers who want to present an accurate ESG perspective

Ratings agencies add to the uncertainty gap with opaque practices and conflicting messages

There is only a 0.61 correlation across leading agencies’ ESG ratings

Rating agencies' ESG engines are often a black box:

Limited info on what data/criteria is included

Lack of explanation as to how data is weighted in final ratings

Rating valuation models often do not fit investment valuation models

Capital market participants struggle to get the guidance and value they need for investors from the available ratings

62

up to 10

different third-party vendors to cover their ESG data needs.

of the largest asset managers worldwide use.

Further confusion as even Regulators provide very limited ESG frameworks

Asset managers & Investment banks further impacted as authorities can still impose fines if a firm claims to deliver ESG quality reviews without scientific proof/evidence

ASSESSING ESG DATA IN ISOLATION CAN BE

EVEN MORE OF A CHALLENGE

ESG data is intrinsically qualitative, so dealing with ESG assessment requires analyzing data on different levels. Those data sets also need to be considered in an integrated and holistic way to deliver value.

Lack access to all required data infrastructure to realize the potential of all data sources

Structured Quantitative data

Lack open data integration which further undermines clarity

Semi-Structured data

Require enormous amounts of data to be processed for continuous and relevant analysis

Unstructured data

Need access to the high complexity of AI/ML model management to be able to fully leverage AI technology

Lack a real-time operating environment

Qualitative data

Have challenges with inevitable increases in operational costs

To gain a competitive advantage asset managers need a holistic, integrated and real-time ESG data solution that can access and leverage data not currently available from existing providers. They also need information customized to individual corporate business value models and an auditable trail of its sources for regulatory compliance justification

THE ESG DATA PlATFORM SOLUTION INTEGRATES DATA

from diverse sources

Statistics

Data

aggregators

SatelLite images

Press release

Social media

Ecological reports

It should be able to:

Process up to 1.3TB of ESG data daily

Quantify qualitative data

Read structured & unstructured info

Measure against agreed benchmarks

ESG DATA PLATFORM

Filter noise to focus on quality

Provide auditable trail

The world wide web universe

100 000+

Data points

That impact your business

1 000+

3

Filters

Essential scores

Clearing the noise

1

500+

Valuation factor

Criteria

As per your selection

The world wide web universe

100 000+

Data points

That impact your business

1 000+

Filters

Clearing the noise

500+

Criteria

As per your selection

3

Essential scores

1

Valuation factor

REQUEST A DEMO

Wherever you are on your ESG

Let's take a glance at the ESG eco-system

journey SOFTSERVE CAN help you ALL

solution functional architecture

THE WAY to your end objectives

Value

FULL-SCALE INTEGRATION

Integration of the real-time fair pricing result into the decision-makig process, risk management and porfolio management process

ESG PRICING

  • Rating to price models
  • What-if scenarios analysis
  • Bottom-up decision analysis

INTERNAL RATING SYSTEM

  • AI/ML models for rating of the formal data and informal incidents
  • AI/ML for cold start

CONTINUOUS DATA FLOW

  • Analysed and processed non-structured (informal) data

MDP-INJECTION

  • Market data providers scores w/o quantitative interpretation

DATA

Historian, Data Lake, DW, virtualization, streaming & ingestion

ANALYTICS

Dashboards, operational analytics, notifications and alerting, self-service analytics

INTEGRATION

Cross-system integration ecosystem, including integration with MDPs, Google API, scrapers, etc.

AI / ML

NPL models for data extraction and processing, rating models, sensitivity models, Q-to-Q models, MLOps for AI/ML management

GPU-BASED INFRASTRUCTURE

Infrastructure allowing real time processing of the significant volume of data and corresponding AI/ML models

Complexity

To Improve Outcomes and Enhance Quality SoftServe has a built-in accelerator – The ESG NEWS IMPACT IDENTIFICATION TOOL 

The ESG Ecosystem solution –

Gathers, Analyzes & Delivers

Extraction of the ESG-related information and further analysis using NLP models

Gathering of structured and unstructured data through the integration of MDPs, scraper, APIs, etc.

Usage of GPU based architecture to enable processing pf large volume of data amount of models

AI/ML models to convert ESG ratings change into the price and risk values of the instrument

Data flows and prosesses are oriented on the integration of ESG calculations into the real-time deision-making process

Management of the AI/ML models’ life cycles

ML-based Analytics Transforms Data into Actionable Insights To Remove ESG Investment Uncertainties

Gathers and analyses structured and unstructured data

Applies NLP analysis of the non-structured data

Leverages impact analysis of ESG-related incidents

Provides scoring, and conversion of qualitative factors into quantitative price/risk-related measures

COMPONENTS

BENEFITS

Ready-to-use environment that easily integrates with client’s infrastructure

Solution receives data from the scrapper and API-based sources

ML models are source-agnostic

ML training environment is part of the ready-to-use solution

Standard data structure covering financial industry standards

Retail industry selected for the scope of the accelerator (Retail has big ESG impact and quite big number of cases)

Solution identifies portfolio entities by full name, nickname, ticker

Align investment analysis approach, by applying a common framework

Close the uncertainty gap in ESG news completeness

Transform abundant data into actionable information

Support investors demand with reliable value analysis input tool

SEE THE DEMO

All Interested Parties Will Benefit

from Smarter Data

ASSET MANAGEMENT COMPANIES

INVESTMENT BANKS

INSURANCE COMPANIES

  • Assess, quantify and price ESG risk investment
  • Flag ESG concerns more accurately
  • Close potential uncertainty gaps
  • Enable targets to be met & verified
  • Display transparency identify market risk associated with ESG practices
  • Discover arbitrage opportunities
  • Ability to quantify ESG risk for valuation accuracy
  • Alert client of potential investment opportunities and risk influences
  • Flag problems arising from adverse ESG events
  • Secure an auditable data trail
  • Timely reporting of ESG impact events
  • Simplify data management for ESG compliance
  • Fill technical & analytic resource gaps


SUSTAINABLE FUNDS

SOLUTION BENEFITS

ESG CONSULTING COMPANIES

REGULATORS

RATING AGENCIES

  • Ensure quantifiable and measurable KPIs/parameters
  • Develop ESG data & investment practices to cover/future proof regulatory demands
  • Secure continuity of regulatory landscape development
  • Ensure 360 data view on-demand with reliable data
  • Ability to quantify ESG risk for valuation accuracy
  • Alert client of potential investment opportunities and risk influences
  • Flag problems arising from adverse ESG events
  • Secure an auditable data trail
  • Timely reporting of ESG impact events
  • Simplify data management for ESG compliance
  • Fill technical & analytic resource gaps

Let's take a glance at the ESG ecosystem

solution functional architecture

BACK TO TOP

Request a demo

Contact us to discover functional features and tech architecture of the Smart Financial Planner.

Follow us

BACK TO TOP