ESG is affecting valuations because increasingly ESG indicators are being used by asset management firms to shape investment decisions. OSINT and ML also have massive applications within ESG, for example, finding opportunities that exist within global trends or which firms are truly putting their money where their mouth is in terms of their investments. For example, Open-source data such as Google trends it’s possible to forecast growth rates of a given industry or verticle. The time-series graph below done back in 2019 sustainable finance search data is forecasted to rise from 60 in October 2019 to 89 in April 2021, suggesting interest will continue to increase at a 49% increase. As illustrated from the following NASDAQ OMX Green Economy Index, shows this data was a good proxy and leading indicator.

Below is a machine-made summary of BP’s annual report that was focused on extracting ESG Thematics that specifically focused on sustainability, Co2, and energy reduction programs. Once the statements are extracted, it’s then possible to compare a firm’s statements and their ESG investments, and outcomes.

Much like NPS, the diversity index - extracted from Glassdoor reviews, shows which corporates are most associated with diversity according to a firm’s own employees. Often these reviews are a more accurate reflection of the company’s culture versus internal surveys.