0:00:30 What is ESG Data?
0:01:16 Data Sources & Collection
0:01:54 ESG Data Use Cases
0:02:16 ESG Data Quality

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Our topic today is ESG Data. With sustainability becoming increasingly important in business, environmental aspects of a business may have a huge impact in a company’s future.

(ESG )Environmental, social and governance topics represent the three main factors which measure the sustainability and ethical impact of an investment in a company or business.

In this video will learn what ESG data is, how it is collected from different sources, and how it is been used in business.

What is ESG data?
ESG data is knowledge on how good a company is at managing and disclosing nonfinancial factors that are relevant to the longterm health of its business and its license to operate.

Environmental
how corporations respond to climate change, how good they are with water management

Social
how effective their health and safety policies are in the protection against accidents, how they manage their supply chains, how they treat their workers

Governmental
whether they have a corporate culture that builds trust and fosters innovation.

Data Sources
ESG, annual and proxy reports
statistics on companies ESG performance can be directly aggregated from the company’s external reporting via scraping and NLP

Government & NGO websites
Similarly, on a national level, the data can be collected from government and NGO reports

Other and alternative sources ( 3rd party)
financial news and reports, company reviews and social media.

How to use ESG data?
In essence ESG Data can be used like any alternative data for financial analysis purposes. This is why investors and hedge funds, willing to make better investment decisions, use ESG Data to identify companies with lower financial risks due to their promising environmental or other practises.

ESG Data quality
Data sources are non standardized and provided by companies themselves. This can lead to occasional bias

Use of alternative data sources like company reviews and social media can help to balance the bias that is at times associated with company provided information.

While company reports are not updated that often, some alternative ESG Data sources like social media and company reviews can give you timely insights that make you smarter than your competitors.

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