ESG | AI |

ESG Controversy Monitoring for Informed Investment Decisions with AI

By: SESAMm | August 17, 2023

In an era where information increases at an unprecedented pace, the necessity for intelligent and efficient methods to filter and analyze large datasets is more critical than ever. This need is particularly emphasized in the finance industry, where private equity firms and asset managers require real-time, AI-powered ESG monitoring to make informed investment decisions.

Harnessing the power of AI for ESG monitoring

As Tyler Cowan noted, even if one could read an article in a second, it would take a lifetime to consume the volume of data available. At SESAMm, we analyze over 20 billion records, representing 250 terabytes of dense information. The challenge is, how can professionals navigate this ocean of data in a reasonable timeframe to make critical decisions?
Natural language processing and AI-powered techniques provide the solution. These technologies enable us to comprehend and navigate a multitude of documents, from newspapers to niche blogs, in mere seconds.

The need for AI-powered ESG monitoring

For private equity firms and asset managers, AI-powered ESG monitoring is not just a trendy concept but a necessity. Identifying potential ESG controversies and understanding the impact of various ESG factors on investment portfolios is crucial for risk management and investment strategies.
At SESAMm, our approach is similar to a "machete, then sandpaper" method. We first eliminate the unnecessary information and then gradually refine the data. We construct a knowledge graph that includes a broad range of entities, from companies and executives to brands and products. By employing custom indices and advanced algorithms, we focus on the most relevant data points. And in the last year, generative AI has been helping us to refine this process even further, achieving a high level of accuracy in our results.

Leveraging AI for ESG insights

Using AI and algorithms like DistilBERT and the Universal Sentence Encoder allows us to process vast amounts of information swiftly. By utilizing a hybrid model that combines on-premises servers with cloud-based solutions, we ensure speed without compromising cost-efficiency.
Our specific workflows for identifying ESG controversies leverage this technological prowess. We understand the importance of not sending our clients on wild goose chases with false positives. Our AI-powered ESG monitoring system is designed to identify only the most relevant and likely material risks. This approach saves time and ensures our clients have the insights they need without being overwhelmed.

From vast data to actionable insights

Our journey begins with over 20 billion records, but the destination is concise, actionable insights tailored to your industry and needs. We focus on what truly matters, employing AI, NLP, and strategic data processing techniques to transform a deluge of information into a manageable stream.
For private equity and asset managers, our AI-powered ESG monitoring provides the critical insights needed to make informed decisions. By prioritizing precision and reducing noise, we ensure that the information we present is not just accurate but also relevant.

SESAMm's approach

The age of information has called for intelligent, systematic detection of ESG controversies. Through AI-powered ESG monitoring and careful consideration of unique requirements, SESAMm delivers unparalleled insights tailored to the world of finance.
If your firm is engaged in private equity or asset management and is keen on leveraging data to identify potential ESG risks and controversies, SESAMm's offerings are designed to meet your exact needs.


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.