The leading knowledge platform for the financial technology industry
The leading knowledge platform for the financial technology industry

A-Team Insight Blogs

Refinitiv Builds out MarketPsych Analytics with ESG Offer, Rebrands MarketPsych Indices

Refinitiv is building out its portfolio of ESG solutions with the addition of MarketPsych ESG Analytics, an analytics tool that provides numerical ESG insights on companies and countries based on news and social media monitoring.

The analytics tool extends a long relationship between Refinitiv and MarketPsych, a provider of data feeds based on the application of AI and behavioural economics to online media and text. In 2012, the Refinitiv MarketPsych Analytics data set was introduced, followed by a cryptocurrency extension in 2018, and the predictive StarMine MarketPsych Media Sentiment model in January 2020.

The companies have also worked together on MarketPsych Indices, including an index for wealth managers. These Refinitiv MarketPsych Indices are being rebranded as Refinitiv MarketPsych Analytics.

The software underlying the Refinitiv MarketPsych ESG Analytics is an AI-based natural language processing (NLP) engine, which locates, filters and scores ESG themed content about specific companies as well as cities, regions and countries from tens of millions of authors in thousands of global resources – over 2 million credible articles and posts in a dozen languages are processed every day. The engine excludes corporate press releases, corporate websites and regulatory filings to maintain the perspective of third-party media and minimise the impact of corporate greenwashing.

Leon Saunders Calvert, head of research and portfolio management at Refinitiv, says: “The Refinitiv MarketPsych ESG Analytics are built to appeal to both ESG fundamental users and existing MarketPsych Analytics users. For the former, Refinitiv is offering a package with one to one hundred scores daily, allowing users to compare rankings based on company disclosure with what news and social media have to say about a certain metric. In addition, a more advanced package offers minutely-updating scores with a much wider set of scores.”

Richard Peterson, CEO at MarketPsych, adds: “Using this data, our clients can explore how media perceptions and corporate behaviour impact business performance over time. For example, we’ve found that the share prices of companies with higher workplace sentiment scores significantly outperform their peers, and it appears that happier employees generate more value for shareholders. We hope that such insights inspire positive changes in corporate structure and behaviour.”

Potential users of the MarketPsych ESG Analytics include quantitative investors deploying the data to enhance alpha generation and risk management; discretionary investors using the data to improve portfolio construction; corporate clients monitoring market perceptions of their own and competitor firms; regulators using the data to more precisely direct investigations; and analysts and researchers exploring relationships between ESG and economic performance.

Related content

WEBINAR

Recorded Webinar: How to establish data quality and data governance for analytics

Data quality has been a perennial problem for financial institutions for many years, but this needs to change as firms become increasingly reliant on accurate analytics to deliver business opportunity and competitive advantage. New approaches to data quality can help firms up their game and significantly improve their analytics capability. Adding the processes, controls and...

BLOG

Observational Learning Boosts Data Quality, Improves Reconciliations, Cuts Costs of Exceptions

Large data volumes and manual data validation techniques are making it difficult for firms to achieve levels of data quality required to support seamless transaction processing and regulatory reporting. The problem is exacerbated by MiFID II and other emerging regulations that impose new processes on transaction reporting, including reconciliation of transactions from the trade repository...

EVENT

RegTech Summit London

Now in its 5th year, the RegTech Summit in London explores how the European financial services industry can leverage technology to drive innovation, cut costs and support regulatory change.

GUIDE

Entity Data Management Handbook – Seventh Edition

Sourcing entity data and ensuring efficient and effective entity data management is a challenge for many financial institutions as volumes of data rise, more regulations require entity data in reporting, and the fight again financial crime is escalated by bad actors using increasingly sophisticated techniques to attack processes and systems. That said, based on best...