A-Team Insight Blogs

Refinitiv Teams with MarketPsych to Launch ESG Analytics

Continuing its focus on adding capabilities with an ESG theme, Refinitiv has teamed up with Los Angeles-based MarketPsych to launch Refinitiv MarketPsych ESG Analytics to monitor perceptions of sustainability and ESG risk. The analytical tool draws upon news and social media monitoring to offer analysts and portfolio managers numerical insights into companies and countries of interest, complementing Refinitiv’s range of ESG scoring services.

The new service adds context to Refinitiv’s existing ESG data by offering an external ‘outside-in’ perspective on a company or country’s sustainability by processing millions of global articles and social media posts in near real-time.

Refinitiv MarketPsych ESG Analytics can be deployed across a number of use-cases. Quantitative investors can use the data to enhance alpha generation and risk management. Discretionary investors can use the data to improve portfolio construction. Corporate clients can monitor market perceptions of their own and competitor firms. Regulators can use the data to more precisely direct investigations. Analysts and researchers can explore relationships between ESG and economic performance. Governments are able to monitor media perceptions of their activities.

According to Leon Saunders Calvert, Head of Research & Portfolio Management, Refinitiv, the new service “augments Refinitiv’s ESG company disclosed data with sophisticated AI tools to create high frequency sentiment data on ESG considerations based on news and social media.”

Refinitiv MarketPsych ESG Analytics is underpinned by a complex AI-based natural language processing (NLP) engine, which locates, filters and scores ESG-themed content pertaining to specific companies as well as cities, regions and countries from tens of millions of authors in thousands of global resources. The NLP engine excludes corporate press releases, corporate websites and regulatory filings in order to maintain the outsider perspective of third-party media and minimize the impact of corporate ‘greenwashing’.

The ESG data feed publishes scores on over 100 ESG themes and controversies on a minutely, hourly and daily basis. The data covers 30,000+ companies and 252 countries and territories. The data history extends back to 1998, and companies were added point-in-time to facilitate quantitative research and minimize survivorship bias. Scores are published on key ESG themes such as intellectual property violations, management scandals and ESG policy failures.

Richard Peterson, CEO, MarketPsych, says the services allows “clients [to] explore how media perceptions and corporate behavior 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 behavior.”

Related content

WEBINAR

Upcoming Webinar: The evolution of market surveillance across sell-side and buy-side firms

Date: 21 September 2021 Time: 10:00am ET / 3:00pm London / 4:00pm CET Duration: 50 minutes Market surveillance is crucial, and in many cases a regulatory requirement, to ensuring orderly securities markets and sustaining confidence in trading. It can be breached and has become increasingly complex in the wake of the Covid pandemic, Brexit, and...

BLOG

When Being Digital is No Longer Enough to be Different – A New Take on Build vs. Buy

By Matt Barrett, CEO, Adaptive Financial Consulting. Technology has transformed financial services over the past decade – dramatically increasing efficiencies, simplifying some workflows and improving accessibility – benefiting everyone from large institutions to fintech start-ups. In this constant race to embrace technology, digitalisation has gone from being a ‘nice to have’ to becoming ubiquitous –...

EVENT

Data Management Summit USA Virtual

Now in its 11th year, the Data Management Summit USA Virtual explores the shift to the new world where data is redefining the operating model and firms are seeking to unlock value via data transformation projects for enterprise gain and competitive edge.

GUIDE

ESG Handbook 2021

A-Team Group’s ESG Handbook 2021 is a ‘must read’ for all capital markets participants, data vendors and solutions providers involved in Environmental, Social and Governance (ESG) investing and product development. It includes extensive coverage of all elements of ESG, from an initial definition and why ESG is important, to existing and emerging regulations, data challenges...