SESAMm has been spotlighted in Elaia's 2023 Sustainability Report as a key innovator driving positive change through AI technologies. This inclusion underscores SESAMm's role in advancing ESG principles within its operations and the financial industry.

Elaia, a prominent venture capital firm, has recognized SESAMm for its advanced AI-driven solutions which significantly enhance ESG data analysis, providing useful insights that empower investors to make more informed, responsible decisions. The report highlights how SESAMm’s cutting-edge technologies help firms navigate the complex landscape of ESG investing, turning over 25 billion articles and social forums in more than 100 languages into actionable intelligence using AI.

SESAMm's commitment goes beyond mere compliance; it is about leadership and responsibility in shaping the future of sustainable investing. By leveraging natural language processing and machine learning, SESAMm enables its clients to swiftly identify and act on ESG risks and opportunities, thereby contributing to more sustainable global markets.

This accolade from Elaia celebrates SESAMm’s achievements and sets a benchmark for sustainability in tech. It encourages continuous innovation and ethical practices that lead to a better, more sustainable future.

To learn more about SESAMm’s role in advancing sustainable finance, we invite you to download the full report.

Reach out to SESAMm

TextReveal’s web data analysis of over five million public and private companies is essential for keeping tabs on ESG investment risks. To learn more about how you can analyze web data or to request a demo, reach out to one of our representatives.

Summer is almost over for us in the northern hemisphere. (We know. It's sad for us, too.) And with this seasonal shift comes back-to-school and back-to-work activities, including taking a last-minute vacation. And vacations mean time for reading, right?

While they may not be beach reads, we think we have some great choices. These are the posts that have been most popular on SESAMm's blog in the past five months. Let's get started with SESAMm's most-read blog posts since this spring, starting with number 10.

#10 What Investors Ought to Know About Natural Language Processing: A Quick Guide

Read this quick guide about what natural language processing is, how it’s used, why it's important to uncover financial alternative data. Bonus: Get an overview of how NLP works at SESAMm.

#9 S&P 500 ESG Index Drops Tesla: This Analysis Supports the Decision

Review SESAMm's analysis based on its ready-to-use data streams, revealing red flags that support the decision to oust Tesla, Inc. from the S&P 500 ESG Index.

#8 Alternative Data Trends: NLP Analysis on Commercial Real Estate

Read the takeaways of the current commercial real estate market we extracted using SESAMm’s NLP-powered engine to analyze web data.

#7 VIDEO: ESG Data Challenges and How AI and NLP Offer Solutions

Watch CEO Sylvain Forté at Japan Investor Forum, discussing ESG data, its challenges, and how to use AI and NLP to generate insights on millions of companies.

#6 How Organizations Are Using NLP To Detect Greenwashing

See how we apply our NLP capabilities to identify companies likely to engage in greenwashing practices by analyzing text in billions of web-based articles.

#5 Alternative Data Trends: 5 Effects of the Failing Musk-Twitter Deal

Based on alternative data, discover how Elon Musk’s personal and related brands measure up to public sentiment following his failed acquisition of Twitter.

#4 What Investors Ought to Know About Data Lakes: A Quick Guide

Discover why SESAMm’s data lake is ideal for investment research and other basics like what a data lake is, why it’s important, what it does, and how it works.

#3 Gain Insights From Financial and ESG Data Using AI: A Comprehensive Guide

Learn how SESAMm’s AI and NLP platform is used to gain financial and ESG insights from alternative data for systematic trading, fundamental research, and more.

#2 What Investors Ought to Know About Knowledge Graphs: The Core of Text Analysis

Learn what SESAMm’s Knowledge Graph is, what it does, and how it’s used in text analysis for financial research, such as in private equity and hedge funds.

#1 Predicting stock price movements using news and social media data

Tokio Marine & Nichido Fire Insurance Company and SESAMm work together to predict stock price movements using NLP-generated data from news and social media.

Thank you for reading through our Summer Roundup: the 10 most-read blog posts this year.

Which is your favorite? How would you rate these posts? Let us know what you think on Twitter or LinkedIn.

In recent years, the concept of Environmental, Social, and corporate Governance (ESG) investing has gained tremendous traction. Not only does it offer opportunities to generate sustainable returns, but it also enables investors to make a positive impact on society and the environment. However, to truly understand the value of ESG, we need to shift our perspective and consider the 'new' stakeholders that are becoming increasingly crucial in this space. In this blog post, we’ll also delve into the challenges of the current ESG rating systems and discuss how AI is transforming the ESG landscape.

Broadening the ESG landscape: Emergence of new stakeholders

Historically, financial analysis has primarily focused on the impact of a company’s actions on its shareholders. Today, however, this view is expanding to include a more diverse array of stakeholders, thanks to ESG analysis - groups that are vital for a company's long-term prosperity. The environment, local communities, government authorities, regulators, NGOs, and journalists now take center stage as new stakeholders in the ESG dialogue.

The environment, for instance, is a stakeholder that companies can no longer afford to ignore. Overexploitation and neglect have led to climate change, thus, the depletion of vital resources and biodiversity, jeopardizing the long-term viability of many businesses. The recognition of the environment as a stakeholder underscores the necessity to balance economic growth with sustainable practices.

Similarly, local communities provide the workforce that companies rely on and need to respect their social environments and fundamental human rights. Governments, often viewed solely as tax collectors, are also stakeholders, providing key services like infrastructure, safety, and the rule of law. Finally, NGOs and journalists, tasked with safeguarding the general interest, ensure transparency and accountability, holding companies to their ESG commitments.

The problem with current ESG ratings

As companies grapple with these complex and interconnected issues, ESG ratings have emerged as a tool to gauge their sustainability efforts. However, these ratings aren't without their flaws.

Firstly, there is a notable divergence of opinion between rating providers, which can lead to confusion and inconsistency. Different providers may emphasize different aspects of ESG, leading to disparate ratings for the same company.

Secondly, most ESG ratings are based on self-reported data, creating an inherent risk of bias or selective reporting. It’s like allowing students to write and grade their own exams, which isn’t ideal for a system aiming to bring transparency and objectivity.

The power of AI in ESG risk assessment

To overcome these challenges, a new player is emerging in the field: Artificial Intelligence (AI). Through Natural Language Processing (NLP) algorithms, AI can analyze billions of documents from a wide range of sources to provide a more objective and comprehensive view of a company's ESG performance.

These AI-driven tools, like those developed by SESAMm, can scan a plethora of information, from press articles and social media posts to reports from NGOs, local press, and governmental bodies. They can detect ESG controversies, positive events, and sentiments linked to various ESG issues. This results in a more detailed and accurate picture of a company's ESG framework that surpasses what current ratings offer.

By bridging the gap between traditional ESG ratings and actual on-the-ground impact, AI provides a novel and powerful tool for investors and companies alike. It fosters a more holistic approach to sustainability, one that takes into account the increasingly complex web of direct and indirect stakeholders.

The future of ESG

In the grand scheme of things, the integration of AI into ESG analysis marks a significant leap forward. By acknowledging the role of new stakeholders and addressing the shortcomings of current ESG ratings, AI is reshaping our understanding of sustainable investing. The road ahead is exciting and promising, and there's no better time than now to harness the power of AI for a more sustainable and inclusive future.

Reach out to SESAMm

TextReveal's web data analysis of over five million public and private companies is essential for keeping tabs on ESG investment risks. To learn more about how you can analyze web data or request a demo, contact one of our representatives.