We examine the benefits of ESG integration for investors by exploring the recent Ubisoft scandal, where our NLP model flagged management issues weeks prior in news coverage.
Blackrock recently noted that 88% of sustainable indices outperformed their peers over the first four months of this year making the financial benefits of ESG integration increasingly clear. This means that the question is no longer simply 'should I consider ESG ratings?' - instead, investors must consider how they can find data that will help them gain an ESG edge.
At Amenity we have been working to build products that help investors find that advantage, and on a weekly basis we're going to start sharing some of the stories that our NLP models flag.
We highlight Ubisoft whose shares dropped on Monday, July 13th, after the company announced that several top executives had resigned because of sexual misconduct. After the announcement Jefferies downgraded the stock citing ESG risks.
While Ubisoft set new highs for mentions and lows for ESG sentiment this week, we first picked up news of the complaints on June 26th. Despite the investigation, the stock went on to reach a new 12 month high before news of the resignations broke. By tracking sentiment we were able to highlight this disconnect in real time.
Stay tuned for more case studies and please reach out if you have questions or want to talk about ESG!
Request an ESG demo today to find out how you can analyze earnings call transcripts and other financial documents with our text analytics platform. Spot outliers, identify critical insights, and understand key drivers.
Amenity Analytics is the industry leader in providing insights from unstructured text by using Natural Language Processing (NLP) assisted by Artificial Intelligence (AI) and Machine Learning (ML). Amenity’s NLP system is a sector-agnostic, language-dependent tool for quantitative text analysis that is deployed across the financial services industry and beyond.
This communication does not represent investment advice. Transcript text provided by FACTSET and S&P Global Market Intelligence.
Copyright ©2020 Amenity Analytics.