AI can help tackle ESG data challenges in sustainable investing
Efforts are afoot among financial institutions to present quality, standardised and simplified data to support investors’ goals.
WITH evolving regulations and discourse around sustainable investment in many parts of the world, more investors are beginning to understand the relevance and importance of sustainability as part of their investment goals. This is especially among the young and affluent.
However, many investors are unable to properly pinpoint a company’s environmental, social, and governance (ESG) performance because of the lack of standardised ESG information.
Today, it is difficult for investors to compare companies’ ESG performance as there are different methodologies, metrics, and weightages – adding complexity for investors to make informed decisions.
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