10.23.2024 Bahar Gidwani
Toronto – Act Analytics and CSRHub today announced the Act Analytics Natural Language Processing (NLP) ESG scores are being incorporated into CSRHub’s aggregate ratings platform. The addition of Act Analytics ESG scores to those already on the CSRHub platform, improves investors’ ability to evaluate the ESG performance of thousands of companies.
Sustainable finance and ESG is a critical investment lens representing 33% of AUM in the US at $17.1 trillion, growing 42% between 2018 and 2020 according to a recent report by the Forum for Sustainable and Responsible Investment.
Act Analytics uses NLP to generate real-time news-driven ESG scores for over 24,000 companies. Scores can be customized based on a universe of granular ESG themes. The scores are generated from analysis of over two hundred trusted, independent news sources. In particular, the Act Fast Score reacts quickly to daily news and the standard Act Score highlights longer-term trends. Event Scores help users to efficiently monitor risk, anticipate volatility, discover alpha and identify major ESG issues for engagement.
Zachary Dan, CEO of Act Analytics, said:
“I am delighted to partner with CSRHub in their mission to create consensus ESG scoring. The market needs help in understanding how an individual ESG data set compares across the industry. There are many different methodologies that drive differences in ESG scoring and CSRHub plays an important role in the industry in bringing color to that picture.”
The CSRHub platform maps different ESG data partners to a central schema, converts to a standard numeric scale and normalizes the data sets. Scores are weighted, trimmed to present only those entities with robust supporting data and presented in aggregate. Investment professionals use CSRHub to establish a consensus ESG view in order to screen investments, monitor risk, align to ESG strategies and frameworks and corporate engagement.
The ESG industry represented on the CSRHub platform uses a number of different methodologies to drive their scoring. In particular, key methodological variants include different data sources and use of technology. Traditional ESG ratings are more dependent on corporately disclosed information from CSR reports, Annual reports, filings and surveys. New entrants are using independent ‘big data’ sets to establish ESG scoring. Typically, this big data approach is using natural language processing to process the sentiment attached to a particular company on a specific ESG issue.
Bahar Gidwani, Chief Technology Officer of CSRHub added:
“I am delighted Act Analytics has chosen to work with us to help grow the industry. Our mission to provide consensus ratings of company ESG performance works as a lever to improve corporate sustainability. We hope that our transparent data platform is part of a broad change that relates company value to its environmental, social and governance performance. We are pleased that Act Analytics shares this goal.”
Act Analytics was founded by former portfolio management, machine learning and market data experts. Act Analytics is leading the way for investment professionals to integrate accurate real time, independent ESG scores into their models. Act Analytics uses NLP sentiment analysis of 200+ trusted independent news sources, with tens of thousands of referenceable articles per day on 17,000+ entities to generate unique insights and transparency with 500,000+ real time equity scores for investors.
CSRHub offers one of the world’s broadest and most consistent set of Environment, Social, and Governance (ESG) ratings, covering 22,000 companies. Its Big Data algorithm combines millions of data points on ESG performance from hundreds of sources, including leading ESG analyst raters, to produce consensus scores on all aspects of corporate social responsibility and sustainability. CSRHub ratings can be used to drive corporate, investor and consumer decisions. For more information, visit www.CSRHub.com. CSRHub is a B Corporation.
Act Analytics, 4 King St. West Suite 1230, Toronto, Ontario | Tel 416 435 6235 | info@act-analytics.com
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