Sustainable value creation

Using Neural Alpha’s platform, BGF automated peer-benchmarked ESG and climate risk reports for all 194 portfolio companies, replacing manual work with a repeatable annual pipeline that delivers actionable, financially grounded recommendations to every portco.

Using Neural Alpha’s platform, Just Capital analysed 400,000+ documents to extract ~100,000 ESG data points across the Russell 1000, consolidating vendors, cutting cost and manual work, and keeping expert validation in the loop.

Materiality was again in the spotlight recently with launch of IFRS sustainability disclosure standards S1 & S2. Whilst the standards were generally welcomed as a significant step in creating a global baseline for corporate sustainability disclosures grounded in the best practices of accounting standards it was seen as controversial in some quarters. In a large part this was due to its approach to dealing with materiality and more specifically ‘double materiality’ — something largely avoided in the standards according to critics. Proponents highlight the mantra that “what can be measured can be managed” when suggesting that focusing on single materiality / materiality should be the priority for disclosing organisations and is thus the focus of these standards. Double materiality encompasses not just sustainability risks which impact a company’s financial performance but the degree to which that company’s products and activities impact the wider world — a philosophy more adopted in European standards such as in the work of EFRAG.