How ESG Analytics Uses AI Engine to Create ESG Scores for Private Companies
As investors increasingly focus on sustainable and responsible investing, Environmental, Social, and Governance (ESG) investing has gained significant momentum in recent years. However, creating ESG scores for private companies has been a challenge as they do not disclose as much information as public companies. To overcome this challenge, ESG Analytics has developed a unique approach that uses its AI engine, natural language processing (NLP), and external data sources to create ESG scores for private companies.
Natural Language Processing and External Data Sources
ESG Analytics uses NLP to analyze unstructured data sources like news, media, opinions, and other external data from more than 100k sources. Our AI engine processes this data to identify ESG-related events, controversies, and commitments. By using our AI engine in combination with external data sources, we are able to create ESG scores for private companies without relying on their disclosure.
To create ESG scores for private companies, ESG Analytics uses natural language processing and external data sources to analyze unstructured data sources like news, media, opinions, and other external data from more than 100k sources. Our AI engine processes this data to identify ESG-related events, controversies, and commitments. We also find mentions of a company in external media, tag them, classify ESG topics with our proprietary knowledge graph, and then run sentiment analysis to create our flagship 'ESG Pulse' metric, which can be broken down into 26 different categories. By using this approach, we are able to provide comprehensive ESG scores for both public and private companies.
How many private companies do you cover?
When companies onboard with us, we ask for their coverage list, which we add to our database. This ensures that we provide comprehensive coverage for our clients, including private companies that are not required to disclose their ESG information. Our coverage list includes a wide range of private companies across industries, which allows us to provide clients with ESG scores for a diverse set of companies.
Real-Time ESG Scores
ESG Analytics provides real-time ESG scores for companies, which are updated as new data becomes available. Our clients can access these scores and use them to make informed investment decisions. Our real-time ESG scores are particularly useful for investors who want to stay up-to-date on ESG-related events, controversies, and commitments for the companies they are interested in.
How do I do this ?
ESG Analytics has found a way to create ESG scores for private companies by using its AI engine, NLP, and external data sources. Our approach allows us to expand the scope of coverage and provide comprehensive ESG scores for both public and private companies. If you are interested in accessing real-time ESG scores, please visit our website at esganalytics.io/contact. Our team is committed to providing clients with reliable and accurate ESG scores to help them make informed investment decisions.
What’s a Rich Text element? 1
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What’s a Rich Text element? 2
The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.
What’s a Rich Text element? 3
The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.
What’s a Rich Text element? 4
The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.
What’s a Rich Text element? 5
The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.
What’s a Rich Text element? 6
The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.
Why is ESG data expensive?
The costs of collecting, analyzing and storing data are not cheap. And unlike financial data, there is no standardized process for determining ESG scores.The complexity of ESG data and the lack of standardization in the process for assessing environmental, social and governance factors also makes it difficult to compare companies on these metrics. Regulators are trying to make ESG information more transparent by mandating that companies disclose them alongside their financials, but this is still materializing globally. Traditional providers such as MSCI or Refinitiv employ armies of analysts to get this data from corporate disclosures (if it exists) and then normalize that data and provide it back to you. This is a very expenive process, with lots of quality control, and importantly - because this data is not disclosed very frequently (companies typically disclose ESG related data annually), there is less incentive to have a continuous subscription to a ESG data feed, along with risk of information leakage. All of this results in very expensive, and limited annual contracts.
Artificial Intelligence is changing the way we create and consume ESG data, which address many of the issues above - but that is a topic for another day.
Why is ESG data expensive? 6
- The costs of collecting
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- The costs of collecting ation in the process for assessing environmental, social and governance factors also makes it difficult to compare companies on these metrics. Regulators are trying to make ESG information more transparen
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What’s a Rich Text element? 5
- The costs of collecting
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- The costs of collecting ation in the process for assessing environmental, social and governance factors also makes it difficult to compare companies on these metrics. Regulators are trying to make ESG information more transparen
- The costs of collecting
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