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ESG: A Big Data Approach

We were delighted to welcome IFT Industrial Professor Budha Bhattacharya to UCL last week for a presentation on how ESG IQ, a KPMG Big Data analytics platform, is helping clients to integrate ESG Factors in strategic decision-making.

Over the last few years, investor sentiment has shifted and is completely transforming capital markets. Investors want to redirect capital towards a more sustainable and environmentally friendly planet, a fairer society that can combat climate change and erase social inequalities that still exist today. Investors, asset managers, bankers and corporates are scrambling to consider, evaluate and integrate Environmental, Social, and Governance ('ESG') factors into their strategic decision-making by multiple Financial Services (Asset managers, Asset Owners, Investment Banks), Corporates and public bodies. Governments, NGOs and regulatory authorities are rushing to create legislations and regulatory frameworks that are transparent and futureproof to aid investors.

ESG-related data, however, is multidimensional, complex, and scarce. Most corporates and SMEs are either not disclosing enough data or measuring relevant information required to achieve Paris goals. Our planet's most sophisticated players, including significant capital market decision-makers, are truning to Big Data mining and analytics, applying advanced data science, machine learning and AI methodologies to gain more insights not only to cater to the investor sentiments and a better world but also to capture that elusive 'Green Alpha'.

attendees sitting in tiered lecture hall sitting watching Budha Bhattacharya's presentation on ESG