Webinar: Is There Alpha in ESG News?

Can investors utilize ESG news sentiment to maximize alpha in the short and medium term between the intervals that are covered by ESG advisory firms, ratings agencies, and other peers? We investigated the relationship between short-term (weekly, monthly) and medium-term (quarterly) ESG news sentiment and stock returns. As the title suggests, our results indicated there is alpha, and we walked through the analysis. Plus, we discussed how our ESG earnings call and news sentiment data feeds can be used together to produce greenwashing scores.

Amenity Analytics
Webinar Team
April 27, 2022
GoTo Webinar

ESG Webinar: Wednesday, April 27 at 10AM

Real-Time Predictive Scoring Using ESG News Sentiment Data

ESG data is painfully slow. Fund managers are increasingly looking towards sustainable investing while simultaneously needing to generate alpha for their investors. As a result, many funds have turned to ESG advisory firms and rating agencies for guidance. These firms create thorough ESG scorecards. But released only quarterly or annually, these scorecards are far from timely. Moreover, the data in the annual ratings is subject to change, and funds with shorter investment horizons may not be able to effectively evaluate a company in August based on ESG ratings that came out months prior. 

This webinar outlined how Amenity’s ESG news dataset provides investors with real-time, broadly aggregated, and unbiased environmental-, social- and governance-related evidence and scores. We “showed our work” on how we generated alpha by walking through our analysis investigating the relationship between short-term (weekly, monthly) and medium-term (quarterly) ESG news sentiment and stock returns.

Viewers will learn how Amenity’s ESG dataset can deliver results for: 

  • Quantitative systematic trading
  • Quantamental equity research
  • Rating agencies
  • Advisory
  • Introduction: Amenity’s model development process
  • Alpha in ESG Methodology 
  • How we did it: E, S, and G scores 
  • Breakdowns: Top and bottom quintiles
  • Idea Generation: Creating greenwashing scores from news and earnings transcript data feeds

View a Recording: Is There Alpha in ESG News?