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Intro to SESAMm

Thank you very much, Greg. Thank you, everyone, for listening to this presentation. I’m Sylvain. I’m CEO and co-founder of SESAMm. SESAMm is an AI company. We extract billions of articles and messages from the web in order to identify critical insights related to financial institutions and corporates. We’re a team of close to a hundred people. And what we aim to show you today is our new product that helps financial institutions and corporates identify ESG controversies in the form of alerts on all of their investments, on all of their clients, and all of their suppliers.

So there are more than 23 million companies in the world right now. These companies are your investments, your suppliers, your clients, and no one is actually tracking them. Most of these companies are never tracked day to day. SESAMm’s solution aims at automatically identifying controversies on these companies and finding the critical information that you’re missing.

See a dashboard example

So let’s take a quick example first. Here we have dashboards where we analyze a company called Wirecard. Wirecard is a fintech company—German—that went bankrupt a few years ago due to a two billion fraud scandal. That company was heavily embedded into the financial sector, working with a lot of banks, a lot of corporates worldwide.

On our dashboards, we can immediately identify all of the key controversies and all of the key risks on the companies. And we have a score called a virality score that helps assess the severity of each ESG event so as to understand whether that company should be excluded from your list of suppliers, for example, or even discussed as a client.

SESAMm solution benefits

There are key benefits to providing this information and to the way that this product is brought to the market. First, SESAMm covers more companies than anyone else. We cover close to five million firms, whereas most ESG providers have coverage limited to 50,000 firms in total. In addition to that, we’re able to detect controversies in real time and generate daily alerts where normally a bank, for example, would have to go through that process manually and update it just a few times a year instead of receiving that live information.

In addition to that, as you can see on the demo here, we have information for more than 14 years of data. So anytime you onboard a new supplier, anytime you check for information—ESG information, on a new client, or on an investment—you’ll automatically be able to go back in history and understand whether that company was exposed to issues in the past.

Trusted by major financial institutions

SESAMm solutions are already adopted by major banks such as Raiffeisen or Nomura, for example, in this industry, major private equity firms such as Carlyle. And what’s interesting in this solution is that we’re seeing specific interests from commercial banks that are missing the solution in order to track ESG risk on their suppliers and their clients. And it makes sense. Most of these suppliers and clients are small firms, local firms that no one else is going to track. And AI is enabling us to automate the process of monitoring these firms and making sense of that data in real time.

SESAMm's solution in action

So now, let’s go to the second part of the demo. We want to take an actual life example. So let’s take a company like Twilio, for example. So you may know Twilio communications, API, messaging services, phone services, and the like. This company is a typical provider of banks or of financial institutions or any other corporates in the world.

So you see on the left, we immediately identify all of the information related to Twilio. And we can rank this based on negative sentiment so as to understand what are the key critical topics that I should care about and that I should evaluate before actually working with Twilio or in the context of already working with Twilio. We go through that process by handling more than 20 billion articles and messages from more than four million sources worldwide. So that’s an insanely large amount of information.

And on Twilio—say Twilio is one of your suppliers or one of your clients—we immediately identify a large controversy related to a data breach and cybersecurity issue, and we identified both in news but also in some of the specialized cybersecurity websites. In addition to that, we can go in even more granularity and look transparently at the content themselves, read the contents from the platform, and not just rely on a numeric rate saying that “Hey! This company is problematic.” We can actually read the underlying content and understand how the controversy emerged.

SESAMm solution benefits

So the key benefits and the real advantages of that solution is getting information immediately. You don’t have to wait for a due diligence for someone to check for someone to send a questionnaire to the company. You just type in the name, get the information in a few seconds wherever the company is, and however local that company is. It could be the most obscure company. And as you can see our system also covers many different languages, including Asian languages that are monitored automatically.

The second part is that we have access to millions of sources, including very industry-specific sources. I was mentioning cyberthreats. We also have access to NGO websites that identify these types of ESG issues in real time.

So this is really the information that is aimed at helping you monitor controversies and ESG events in just one place on any number of companies, public and private, whether they are your suppliers, your clients, or your investments. You can make sense of that data in real time using AI.

Presentation summary

I’ll finish this presentation a bit early, and we’ll actually bring the point to three calls to action. The first one is, first, please come to our booth. We’re actually on the left of the exhibit hall right when you come in. The second one is, please visit our website. It’s spelled SESAMm, sesamm.com, and you can get a free trial from the website. And finally, come talk to our amazing team with Dave and the rest of our team at our booth. And please ask us for a free POC—whether you’re a bank, an asset manager, or a fintech company—and help us help you track all of the ESG controversies on millions of companies.

Thank you very much.

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. For example, ESG Alerts provides a better way to research and monitor your investment portfolio. To learn more about how you can analyze web data or to request a demo, reach out to one of our representatives.

In a recent interview, Jose Salas, Head of Partnerships and Strategy at SESAMm, alongside Kiet Tran and Kat Tatochenko, shared how SESAMm is transforming the landscape of AI-powered text analysis. SESAMm excels in extracting valuable insights from diverse data sources, addressing key issues like ESG controversies and SDG impacts for clients, which include private equity firms and financial institutions.

Salas highlighted SESAMm's distinct approach to technology, emphasizing its role in identifying risks and opportunities for investors. The company's future plans involve embracing generative AI to refine our data analysis further, promising even sharper insights for our clients.
SESAMm's innovative strategies demonstrate our commitment to turning complex data into actionable intelligence, paving the way for smarter investment decisions in the financial sector.

Watch the full interview here:

SESAMm’s AI Technology Reveals ESG Insights

Discover unparalleled insights into ESG controversies, risks, and opportunities across industries. Learn more about how SESAMm can help you analyze millions of private and public companies using AI-powered text analysis tools.

Public companies, due to their large market presence and mandatory financial disclosures, often receive a lot of attention on the Internet. Their operations and regulatory obligations put them under a media spotlight, which amplifies any ESG controversies they face in public and online discussions. In contrast, private companies operate with a higher degree of discretion and are generally less exposed to intense external scrutiny.

Although private companies are less visible to the public, there is still an underlying interest and, more importantly, a need to understand the nature of ESG controversies they face. Are these controversies different in any way, such as being less significant or having unique characteristics? This raises questions about whether certain types of risks are more susceptible to controversies in the private sector. When comparing prominent public companies with their private counterparts, do controversies differ within the same industry?

ESG Overview

In exploring the ESG landscape, a compelling comparison emerges between private and public companies. Public companies predominantly grapple with environmental and social risks. On the other hand, private companies, especially in the financial sector, are more frequently embroiled in governance-related controversies. This section highlights the ESG challenges each sector faces and the varying degrees of visibility and scrutiny these issues receive in the public and private domains.

Within the fossil fuel industry, a distinct difference emerges: public companies are predominantly associated with environmental and social risks, while private companies face more governance-related issues.

This disparity is partly due to the more visible and significant environmental impacts often linked to public companies, such as BP's gasoline spill cleanup in Washington state and the devastating impacts of Shell's oil spills in Nigeria. Public companies also tend to experience more social issues, like employee strikes, protests, and human rights infringements.

In contrast, private companies, particularly in the financial sector, show a higher frequency of governance risks. Examples include controversies surrounding FTX and Binance, highlighting issues like corruption, substantial fines, and money laundering allegations. This trend mirrors the earlier observation in the fossil fuel sector, where private companies, despite fewer controversies, experience more pronounced impacts when significant ESG issues arise.

It's noteworthy that private sector controversies, due to their relatively lower level of scrutiny, can gain significant traction and visibility when they do surface. This differs from the public sector, where the constant exposure to ESG risks leads to more frequent detection but not necessarily the same level of virality for each event. Public companies regularly encounter ESG risks, but the prevalence of such issues in their operations means that individual events may not always attain widespread attention.

ESG Deep-dive

Environmental risks deep-dive

Looking at environmental risks, public companies often face significant issues like emissions, climate change, and water pollution, while private firms encounter these challenges on a smaller scale and with different focuses, such as animal cruelty and environmental strategy.

In the Consumer Discretionary sector, both types of companies encounter environmental risks, but the nature of these risks differs. Public companies, particularly in the automotive industry, are often involved in incidents like fires and lawsuits related to harmful emissions. Private companies, while also dealing with fires and automotive issues, face additional problems like animal cruelty allegations in retail.

The Fossil Fuel sector shows a clear distinction in ESG issues. Public companies frequently face controversies related to climate change and atmospheric pollution, often involved in significant incidents like legal actions and fines. Private companies, on the other hand, are more focused on general environmental strategy, though their controversies tend to be of a smaller scale.

In Utilities, public companies are more involved in water pollution controversies, with significant incidents like fines for unlawful water extraction making headlines. Private companies, while also dealing with water pollution, do so less frequently and on a smaller scale.

The Financial sector reveals that public companies, especially banks and financial services, are closely linked to the fossil fuel industry. This association has led to various controversies, including greenwashing accusations and involvement in ESG probes.

The Healthcare sector, particularly in public companies, shows a focus on biodiversity-related controversies. Issues like animal cruelty in biotechnology are prominent.

Overall, public companies tend to be at the center of more significant and high-profile environmental controversies, particularly in sectors like fossil fuels, utilities, and financials. Private companies, while also facing environmental and ethical challenges, often do so on a different scale, indicating different approaches and impacts in their management.

Social risks deep-dive

Public companies across sectors like Consumer Discretionary, IT, Financials, and Fossil Fuels frequently confront a broad spectrum of social risks, including human rights breaches and human capital concerns. Private companies, while also facing these issues, tend to have a more focused approach, with specific concerns in areas like telecommunications, social media, and health & safety. This indicates differing strategies and impacts on their social management.

Public companies in the Consumer Discretionary sector struggle with a substantial volume of data related to human rights breaches and human capital issues. These challenges are widespread across various industries, with incidents in telecommunications, social media, and the automobile industry being particularly noteworthy. In contrast, private companies in this sector primarily confront human rights breaches, with a significant focus on issues within telecommunications and social media. This contrast indicates a more specialized concern for private companies in this sector.

Both public and private companies in the Information Technology sector experience significant risks related to fundamental human rights breaches and human capital concerns. However, public companies, particularly those in software and hardware, are more frequently linked to these issues. Private companies, while also implicated, tend to have a different focus within the same concerns.

In the Financial world, public companies exhibit a pronounced focus on human capital issues, surpassing their private counterparts. This focus spans the banking and insurance industries with notable instances of discriminatory dismissals and wage disputes. Additionally, public companies in this sector also navigate complexities related to human rights and customer relations, including racial discrimination lawsuits and data breaches. Conversely, private financial companies face significant customer relations issues, especially highlighted in financial services, and human rights concerns, such as charges against Binance for child pornography and terrorism financing.

Private companies in the Consumer Staples sector lead in mentions related to health and safety, particularly in the Food/Beverage and tobacco manufacturing industry. These references often involve serious incidents like industrial accidents and lapses in COVID protocols. Additionally, customer relations issues are slightly more pronounced in private companies compared to their public counterparts. Public companies, meanwhile, have a slightly higher proportion of mentions related to human rights risks, including labor law violations and privacy concerns.

Public companies in the Fossil Fuel sector are notable for their focus on human capital issues, with references to industry-wide strikes and layoffs. In contrast, private companies in this sector demonstrate a significant focus on human rights issues, as exemplified by the case of the ex-Citgo CEO.

A divergence is seen in the Basic Materials sector, where private companies face more prevalent human capital issues, particularly in mining & metals and the chemical industry. Public companies, on the other hand, encounter a higher proportion of human rights breaches, including harassment lawsuits and violations of indigenous rights.

In summary, public companies across these sectors tend to face a wider range of social controversies, encompassing both human rights and human capital issues, often on a larger and more varied scale. Private companies, while also dealing with similar challenges, tend to do so with a more specific focus, suggesting different approaches and impacts in their social management strategies.

Governance risks deep-dive

In scrutinizing governance, we found that public firms face risks in management and governance, while private entities encounter issues like anti-competitive practices and corruption. Financial and Industrial sectors see public companies dealing with strategy and compliance challenges, whereas private firms face tax strategy risks. Overall, public companies are more involved in high-profile governance controversies, while private companies focus on specific areas like tax and anti-competitive behavior.

In the Consumer Discretionary sector, governance issues vary notably between public and private entities. Public companies, particularly in telecommunications and Social Media, encounter significant risks in senior management and governance structures, evidenced by legal actions and allegations against companies like Verizon and Ericsson. Conversely, private companies in Media & Entertainment are more embroiled in anti-competitive practices, as highlighted by Epic Games' antitrust trial against Google.

Information Technology presents a clear distinction. Private companies are frequently linked to substantial corruption issues, with the FTX scandal serving as a prime example. Public companies, on the other hand, are more inclined towards engaging in anti-competitive practices, as seen in the cases of technology giants like Google and Microsoft facing antitrust lawsuits and scrutiny for monopolistic behavior.

In the Financials sector, governance risks are predominantly tied to senior management and corporate structure. Public companies face challenges primarily in their influence on strategy and communication, with notable instances including BlackRock's lawsuit over an alleged misleading ESG strategy. Meanwhile, prominent financial services companies like PayPal have faced regulatory scrutiny, further illustrating the sector's vulnerabilities.

The Industrials sector shows similar trends among public and private companies but with a specific emphasis on tax strategy risks in private firms. This is exemplified by the PwC tax leaks scandal, indicating the deep impact of governance issues in private entities.

In the Fossil Fuels sector, corruption issues are more pronounced, especially among privately-held companies. Incidents such as the lawsuit against Citgo and the Amec bribery case settlement underscore the sector's susceptibility to governance-related controversies.

Lastly, the Utilities sector shows a higher prevalence of corruption among public companies, as demonstrated by the investigation into FirstEnergy's public corruption scandal and subsequent legal actions.

Overall, governance risks manifest differently in public and private companies across various sectors. Public companies are often at the forefront of high-profile governance controversies, dealing with issues related to management, strategy, and regulatory compliance. Private companies, while also grappling with governance challenges, tend to face issues like anti-competitive practices and tax strategy risks, reflecting a variance in operational focus and impact on governance risk management.

Conclusion

By diving into the complexities of ESG, both public and private sectors have a unique opportunity not only to enhance their financial performance but also to drive positive societal and environmental impacts. As we further examine corporate controversies and gain a deeper understanding of the nuances within the ESG landscape, it becomes increasingly clear that a commitment to these principles is essential for long-term success and global well-being. Our journey highlights the tremendous potential for positive change when corporations embrace the pressing demands of today's ESG landscape, paving the way for a more sustainable, equitable, and governance-focused world.

Download the full report to discover how different sectors navigate regulatory pressures and sustainability challenges with real-world examples to guide your strategy.

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.