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