Join SESAMm for our annual SESAMm Day event at the Palais Brongniart in Paris on October 6th, from 8:30 to 10:30 AM.
This year, we're organizing SESAMm Day as a breakfast: hear a panel of clients exchange best practices and put your own questions to them, get a look at what's new on the platform and what's coming next, and connect over coffee with the SESAMm team and other ESG, risk, and compliance professionals.
Full agenda and speaker lineup coming soon.
The European Union is trying to tackle a big problem: imported goods that drive deforestation. A new Deforestation Law, planned to take effect at the end of 2025, would require companies to prove that products like cocoa, coffee, soy, and timber are not linked to forest loss. It’s an ambitious effort to make supply chains more sustainable and to hold global companies accountable.
But not everyone is on board.
The law is rooted in a clear goal. Agriculture and forestry are responsible for the vast majority of global deforestation, and many of the products linked to this destruction end up in European markets. The EU hopes to slow forest loss, protect biodiversity, and reduce climate impact by tightening import standards. The regulation also reflects growing demand from consumers and investors who want more responsible sourcing and transparency.
Over the past few weeks, opposition has gained steam from both industry leaders and EU governments.
On the corporate side, food companies like Mondelez, Mars, and Hershey are asking the EU to delay the rollout. They argue that the regulation could raise costs, cause supply disruptions, and hurt competitiveness. With cocoa prices already hitting record highs, many producers say they lack the tools and infrastructure to meet the new requirements.
At the same time, 18 EU countries, including Italy and Austria, have written to the European Commission urging revisions. Their concerns echo industry concerns: the law might be too complicated, costly, and difficult for small suppliers to navigate.
This growing pushback highlights a real tension. On one hand, the EU wants to lead on environmental issues and use its market power to drive global change. On the other hand, companies and governments are warning that good intentions could come with serious trade-offs.
The next few months will be key. If the EU weakens the law too much, it could undermine its climate credibility. But if it presses ahead without flexibility, it risks creating economic strain and cutting off small producers from the European market.
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.
Happy February!
It was nice to connect with you last month. Here’s where you can find us again this month.
Valentin Aguillon and Kelly Barber will attend the conference. Feel free to reach out to them to learn more about us.
Event details: https://www.maddykeynote.com/
📅 Feb. 8, 2023
📍 Paris
Dave Anspach will introduce our solutions. Come have a chat with him for more information on our ESG technologies.
Event details: https://www.siia.net/event/fisd-new-york-feb-9-in-person/
📅 Feb. 9, 2023
📍 New York
Connect with Sylvain Forté and Juliette Fafa, who will be on site.
Event details: https://awards.starzdata.com/
📅 Feb. 13, 2023
📍 Paris
We're nominated for four awards:
Dave Anspach will answer any questions. Come say hello and wish us luck!
Event details: https://withintelligenceawards.evessiocloud.com/fundintelligenceoperationsservicesawards2023/
📅 Feb. 16, 2023
📍 New York
Want to stay up-to-date with the latest event information? Connect with us on social media:
In recent years, the field of natural language processing (NLP) has seen significant advancements that have enabled more effective processing and analysis of large volumes of textual data. This has had major and disrupting implications for many industries, including finance and investment.
One area where NLP has been particularly useful is in the design of baskets and indices on all asset classes. One of them, where we can definitely observe key value-added, is related to digital assets and cryptocurrencies. A crypto basket is a group of cryptocurrencies that are bundled together and traded as a single unit, while a crypto index is a measurement of the overall performance of a group of cryptocurrencies.
Traditionally, the process of designing a crypto basket or index involved manually selecting a group of cryptocurrencies based on various criteria such as market capitalization, trading volume, and price history. However, this process is time-consuming and can be subject to bias. Moreover, it can be difficult for investors to invest in the crypto market as a whole. NLP technology has allowed it to analyze vast amounts of data from various sources such as news, articles, social media posts, and blogs to identify trends and sentiment around specific cryptocurrencies. This information can then be used to inform the design of crypto baskets and indices, making them more accurate and reflective of market sentiment.
By leveraging sentiment analysis through NLP-based indicators, robust indices can be created to serve as market benchmarks and investment vehicles. These indices can provide relevant performance measurement tools, allowing investors to understand the performance of their investments better and make more informed decisions. Furthermore, using NLP-based indicators to design crypto baskets and indices can also help generate alpha compared to a single basket of tokens. By tracking sentiment and emerging trends over time, investment professionals can gain valuable insights into which cryptocurrencies will likely perform well in the future and which may be less favorable.
Overall, using NLP in the design of crypto baskets and indices has significant potential to improve the accuracy and reliability of these investment products. By leveraging the power of NLP to analyze large volumes of text data, investment professionals can gain valuable insights into market sentiment and emerging trends, allowing them to make more informed investment decisions and potentially generate alpha. This is why we have entered a collaboration with Compass FT to design the first AI & NLP crypto sentiment index.
The Compass SESAMm Crypto Sentiment Index aims to give investors exposure to the crypto market with a sentiment tilt to determine the selection and weights of underlying tokens. The index selects tokens based on financial filters such as average trading volume and market capitalization. Using NLP-based sentiment scores in the weighting mechanism allows the index to rebalance towards the coins with the best sentiment scores efficiently and, therefore, those with the highest expected relative returns.
The Compass SESAMm Crypto-Sentiment Index is a diversified digital asset index designed to offer broad exposure to the market’s top crypto assets (all sectors included) while capping each component exposure at 30%. Weightings are based on sentiment scores, liquidity, and market capitalization constraints.
SESAMm’s NLP technology carries out a granular and transparent analysis of publicly available articles. More than 20 billion articles from over 4 million international and local sources are analyzed to identify each coin’s associated mentions. For each source, indicators of sentiment and volume of mentions are determined. These indicators are then aggregated daily to create a historical time series per cryptocurrency, which acts as the basis for the overall score used by Compass Financial Technologies. For each day and each coin, SESAMm calculates crypto sentiment scores based on several indicators, such as polarity, volume, and memory functions, to provide up-to-date and representative scores. SESAMm’s Crypto sentiment scores are based on the sentiment scores (negative, positive, and neutral) computed on articles related to the 50 digital assets universe.
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.
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