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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.

    • AI capabilities can be helpful in searching for and synthesising useful ESG data for sustainable investing.
    • AI capabilities can be helpful in searching for and synthesising useful ESG data for sustainable investing. ILLUSTRATION: PIXABAY
    Published Sat, Jul 6, 2024 · 05:00 AM

    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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