Transparency in ESG and the Circular Economy: Capturing Opportunities Through Data

The data feeds into Arabesque’s asset management firm, which uses artificial intelligence to enhance a rules-based approach to stock selection that integrates ESG metrics with financial and momentum analyses, in order to produce risk-adjusted returns.

Overall, the concept of solidarity with the human community has begun to establish that a business’s reputation for incorruptibility can be a priceless asset. Reputation alone can mark the difference for awarding company contracts, resilience in corporate stock prices, and overall trust from the markets.

The realization that focusing only on profit-seeking practices had human costs that ultimately hindered corporate efficiency led to a notion of corporate responsibility.

The GIIN has developed the tool IRIS+31 to help investors measure and maximize the positive effects of their investments on society and the environment, taking into consideration ESG factors along with traditional financial metrics like risk and return.

More recently, the Financial Stability Board (FSB) launched the Task Force for Climate-Related Financial Disclosures, which in 2017 released recommendations to support companies disclosing this information to support capital allocation. These recommendations focus on four themes for organizational operations: governance, strategy, risk management,

With the increasing demand from investors for ESG conscious investment opportunities, and the potential for significant returns, the need for portfolio construction tools and metrics to analyze and compare investment options took off. Founded in 2009, the Global Impact Investment Network (GIIN),30 for instance, represents a commitment to utilize ES

The Committee for Economic Development,2 with its track record since the post-war period of engaging business leadership to confront global issues and shape public policy, published the Social Responsibilities of Business Corporations3 in 1971. It presented the idea of a social contract between business and society, where corporations exist as a re

One example of organizational structure that specifically focuses on for profit companies’ commitment to sustainability through a standalone certification is the B Corporation. This class of businesses, across sectors and industries, has committed to the integration of profit and purpose within their strategy. The B Corp certification legally requi

ESG criteria set standards for a company’s operations based on how environmentally or socially conscious their operations are. Environmental criteria measure a company’s level of responsibility with respect to the nature and protection of natural ecosystems. Social criteria measure a company’s responsibility with respect to business ecosystems, inc