Having a practical application of ESG (Environment, Social & Governance) policies was never as complicated as it is now. Due to complexities surrounding successful processing and interpretation of ESG data points, and also the lack of standardisation in the documentation of such data, the process is disrupted. As a consequence, Artificial Intelligence, which can locate, analyse and summarise the knowledge, is revolutionising the ESG domain.
Why is AI needed for ESG data Evaluation?
Public and regulatory emphasis on businesses to ensure that their initiatives are sustainable is rising and on shareholders to consider these policies when assessing investment decisions. For investors, the challenge is how to understand which companies are good ESG entertainers and which are not.
Most of the data leading the analysis and ESG indices derives from data published by the organisation. However, rational investors are challenged by inaccuracies with no regulations covering it. It is where an…
Source: Guardian Newspaper