ESG Case Study
Environmental, social and corporate governance (ESG) refers to the three central factors in measuring the sustainability and ethical impact of an investment in a company or business. These criteria help to better determine the future financial performance of companies (Wikipedia).
ESG is growing in significance amongst institutional investors. Today, ethical considerations and alignment with values are common motivations of many ESG investors but the field is rapidly growing and evolving, as many investors look to incorporate ESG factors into the investment process alongside traditional financial analysis.
Despite the growth in ESG disclosures, investors still often lack sufficient indicators of financially relevant ESG risks. Alternative data sources can help fill the disclosure gap by helping minimize reliance on voluntary disclosure to deliver key insights.
The fact that the data is publicly available does not automatically mean it is also easily available. In order to find the ESG events, we use big data and NLP technology to extract key events that are categories as ESG and have a positive or negative effect on the company’s performance from multiple sources.
From Jan 2019 to date (11.26.19) we found 1194 individual events that are under the ESG category in the US market. The distribution between the categories is as follow: Environmental (6%) Social (44%) and Governance (50%).
Read more at: https://firstoinvest.com/alternative-data-esg-case-study/
