We live in a world of nearly limitless information. Each day, more than 2.5 quintillion bytes of data are created, resulting in virtually infinite possibilities for connecting the dots and exploring the inter-relationships between various seemingly isolated phenomena. The ubiquity of data also results in numerous challenges – whoever is able to make sense of this resulting complexity, will have an edge in not only surviving, but also thriving in the 4.0 Industrial Revolution world. It is now more important than ever to enable organisations and individuals to make smarter, better-informed decisions about managing their finances, through the power of integrated information. Harnessing the potential of the latest breakthrough advances in the field of deep tech – machine learning, AI and deep learning, combined with some of the world’s most comprehensive data sources, is essential in being able to produce actionable insights.
As a case study, I will present Arabesque, which is one of the first asset management companies that is fully specialized in sustainability investing based on quantitative models (“ESG Quant”) for public equities. ESG (Environmental, Social, Corporate Governance) analysis lies at the core of Arabesque’s investment process. Integration of sustainability analysis is the defining feature of the firm’s approach and is embedded in the DNA of our firm. Arabesque S-Ray® is our technology-driven platform for corporate sustainability which enables consumers, corporations, asset managers and asset owners to monitor the sustainability and ESG performance of thousands of companies on a daily basis. This platform equips decision-makers with the tools and information needed to enable successful investment outcomes. S-Ray® has been developed in collaboration with leading universities and a world-renowned board. Developed for Arabesque’s investment process, S-Ray® provides a unique investor perspective and a deep understanding of materiality. S-Ray® utilizes an algorithmic approach, systematically combining a diverse set of data sources, rather than relying on one set of human judgments. Combining breakthrough technological advances, big data analytics, sustainability, and finance is designed to deliver on the firm’s mission to make sustainable finance accessible to all.
Takeaways: Being able to harness the potential of AI and Big Data towards mainstreaming sustainable investing and making it accessible to all. This is going to enable investors, decision-makers and the wider public to build an inclusive, prosperous and values-driven society, resulting in a win-win-win scenario for people, profit and the planet.
Speaker Bio: Inna is part of the ESG Research and Advisory Team at Arabesque S-Ray®. She holds a PhD in climate change and sustainability from Hong Kong University Law School. Her background is in law, innovation and entrepreneurship, building and scaling FinTech and GreenTech startups throughout Europe and Asia. Her current focus is on ESG investing and big data research, as well as volunteering her time as a UNSDSN Youth Project Officer, fostering youth-led Solutions Initiatives and developing Digital Ecosystems to deliver the Sustainable Development Goals (SDGs). Inna is passionate about environmental sustainability and enhancing economic opportunity for all.