Leveraging data science capabilities to increase transparency into ESG data

Northern Trust (Nasdaq: NTRS) and Equity Data Science, Inc. today announced the launch of an ESG workflow solution that will allow investors to more quickly access and share ESG information. The new ESG digitized data aggregation tool leverages data science to help increase transparency while enhancing efficiency and collaboration amongst investment teams.

See related article: Northern Trust Asset Management Launches Quantitative ESG Strategy for EMEA and APAC Investors, FlexShares Expands ESG & Climate Suite with Emerging Markets ETF

A lack of clear, industry-accepted standards for ESG data poses a challenge for investors. As digitization continues shaping the financial services industry, the ESG workflow solution can integrate ESG data and analysis directly into the investment process, incorporating feeds from multiple data providers and types.

“We know that implementing ESG is a top concern for our clients, so EDS and Northern Trust have come together to launch our new ESG workflow solution to provide our clients with a single source for their data,” said Paul Fahey, Head of Investment Data Science at Northern Trust. “This enables more efficiency and transparency for investment teams and helps clients streamline their data and reporting processes.”

The ESG workflow solution allows investment teams to analyze and measure decision-making across the investment lifecycle and quickly share and evaluate information as it becomes available. Specific features include:

• Automated capture of ESG data from market and specialist vendors, including unstructured data sets that identify potential ESG issues.
• Seamless integration of vended data elements (e.g., notes, commentary) within the system for access to all ESG-related data in a single view.
• Workflow tools that digitize analysts’ processes around gathering, reviewing, and annotating ESG scoring and events, as well as decision points throughout the investment process.
• Analytics and dashboards that allow analysts and portfolio managers to interrogate, visualize, compare, and decompose ESG scores from major vendors for deeper insights into each company’s true ESG profile.

“The ESG workflow solution helps clients tackle several issues brought on by the complexities of ESG data without altering their processes,” said Greg McCall, President of Equity Data Science. “This allows investment teams to modernize and integrate their ESG data across the entire investment lifecycle, empowering them to further harness their ESG data.”

According to global investment manager Sanders Capital LLC: “Northern Trust and EDS brought real insight into how digitization could drive value. Together, we transformed one of our most cumbersome functions into a best practice model for our broader investment process.”

Source: Equity Data Science and Northern Trust