ESG Data Collection with Adaptive AI

Abstract

The European Commission defines the sustainable finance as the process of taking Environmental, Social and Governance (ESG) considerations into account when making investment decisions, leading to more long-term investments in sustainable economic activities and projects. Banks, and other financial institutions, are increasingly incorporating data about ESG performances, with particular reference to risks posed by climate change, into their credit and investment portfolios evaluation methods. However, collecting the data related to ESG performances of corporate and businesses is still a difficult task. There exist no single source from which we can extract all the data. Furthermore, most important ESG data is in unstructured format, hence collecting it poses many technological and methodological challenges. In this paper we propose a method that addresses the ESG data collection problem based on AI-based approaches. We also present the implementation of the proposed method and discuss some experiments carried out on real world documents.