In this webinar, we explored how leaders in ESG investing are leveraging Generative Artificial Intelligence (GenAI) to achieve best-in-class ESG integration for tackling issues such as human rights. GenAI and Large Language Models (LLMs) such as ChatGPT exploded in popularity in the year before the webinar, disrupting many established industries and jobs.
ESG investing is one segment where adopting LLMs has proven to be a game changer for traditionally expensive, labour-intensive and error-prone tasks such as portfolio- or universe-level research and ESG assessments. The fast-moving competitive and regulatory landscape within sustainable finance is driving the need to use an unprecedented volume and variety of data sources. The exponential growth of corporate disclosures and accompanying taxonomies, reporting standards and guidance is adding to the costs of reporting and of developing benchmarks, screens and assessment methodologies.
Human rights is a notoriously challenging ESG factor to incorporate at universe scale. Key to managing this risk is understanding the policies, commitments and mechanisms companies have adopted to manage the issue. In the webinar, financial and technology leaders shared their practical experiences of using GenAI to search and explore company disclosures, perform human rights performance assessments and develop scorecards for risk management and reporting.
Speakers: Elena Espinoza, Senior Engagement Analyst, Social Issues, The Phoenix Group; and James Phare, CEO, Neural Alpha.
