Sustainability Reporting: How to Use Data and Artificial Intelligence to Tackle the ESG Challenge

Transcript

1. Sustainability Reporting: How to Use Data and Artificial Intelligence to Tackle the ESG Challenge PATRICK SLAVENBURG OECD, SME DigitalAlliance + EU Commission Focus Group, Smartified, ESG.NGO 14 SEPTEMBER 2022
2. For investors it's fiduciary duty What's worth doing... is worth doing for money - Gordon Gecko Asset climate risks & supply shocks 01
3. For investors it's fiduciary duty And suddenly, just like that, you become unbankable, uninsurable and without political friends... Systemic brittleness If the cost of ruggedization exceeds the future value of that place or system to decision-makers, ruggedization won't happen. 02
4. 02 "Investing in “ethical” or “green” or “sustainable” assets. They prefer a company that doesn’t burn coal, eschews nepotism and has diverse senior executives"- Stuart Kirk (HSBC) 01 “The market places a great deal of importance that companies are credible from an ESG perspective and can be held to account with regards to their ESG record” - Clifford Chance For "we the people" it's double materiality Doing the right thing with your money...
5. ...not as easy as it sounds...
6. 01 Qualitative • Diversity 02 • Data Privacy, Cybersecurity, Ethical AI • Health Quantiative • Carbon footprint • Energy • Water Which metrics? The most frequently used ESG metrics out of dozens • Trees planted (offsets)
7. 02 ...collect reliable data 01 ...speak in the same language ESG metrics are a mess. Even Climate ones. It's 2022 and it's still a pain to... 03 ...provide reliable forecasts vs. 2030 targets
8. 02 "If the market recognises that an issuer is using state-of-the-art technology to measure its carbon emissions, enabling it to reduce to a minimum the number of estimations in its calculation methodology, it will gain credibility" E&Y 01 "If an issuer can provide satellite imagery to demonstrate the environmental impact of its investment (such as the number of trees planted per year), they are likely to build trust with green investors"- Clifford Chance Auditable Data. Explainable AI.
9. Financial news Government reporting ESG Key Drivers in Stakeholder Reports Dashboard & Data: Self-reporting is verified Satellite Verification Sentiment Analysis applied to ESG Key Drivers Benchmarking your ESG Metrics Using AI Compare yourself to your competitors on key ESG scores
10. Satellite Image Computer Vision
11. If you know anyone interested in *free* water forecasting months in advance + real time updates... ... we are looking for launch partners with our European Space Agency Incubator program focusing on ESG for mid-sized companies. PATRICK SLAVENBURG 14 SEPTEMBER 2022