Читать книгу ESG Investing For Dummies - Brendan Bradley - Страница 45

As the significance of the ESG market has grown, the financial industry has evolved the definitions of which ESG factors are relevant and how they can be applied to the performance of a company. Using this more informed data from companies, combined with enhanced ESG research and analytics capabilities, the industry is producing more systematic, quantitative, impartial, and financially applicable approaches to highlight the core ESG factors.

In turn, this has generated more research that advocates a better understanding of ESG investing and resultant data points to feed the new AI approaches to filter unstructured data through Natural Language Processing (NLP) and Machine Learning (ML) to drive predictive analytics (find more information on this later in this chapter). There are tens of thousands of company issuers and hundreds of thousands of equity and fixed-income securities — combined with an increasing array of ESG ratings and metrics — to be considered when identifying the risks and opportunities within a portfolio.