Straive Data Platform (SDP) is our proprietary end-to-end cloud-centric and modular Data Lifecycle Management Platform. This platform helps to Extract, Transform and Enrich - collecting, curating, and organizing the data into data elements, keywords, indexes, classifications, and deliver into the desired format.
To feed the ESG framework, SDP uses data sources like Annual Reports, CSR documents, 10Ks, news, corporate filings, and more to identify the data points to be extracted. Various text, visual, and public sources are screened and sifted to gather information on ESG indices.
Extracting ESG data from the news gives usable and current ESG-related indicators for private and small-mid cap companies. It is also a source for information on ESG-related controversies.
Tracking ESG data outside of what companies disclose is a cumbersome and challenging task. However, it is a productive activity in several cases. For small and mid-cap companies, ESG disclosure is not mandatory and is rarely reported through company publications.
Moreover, disclosures are reported at low frequency and are generally historical. Voluntary disclosures do not cover all controversies and other adverse ESG events due to reputational risks.
Tracking data from the news requires a very different acquisition model. Some of the significant challenges include:
Straive Data Platform (SDP) uses a customized taxonomy to solve a client's individual use case.
Green bonds have seen consistent growth and reflect rising focus from the companies and investors. It helps companies to drive insights and outcomes for sustainable investment goals.
As firms focus on sustainable investing and green/ESG bonds, they seek comprehensive ways to understand issuer ESG metrics and bonds. There is also a specific need to track these bonds as they mature over time.
Straive Data platform (SDP) tracks over 3000+ green bonds across the world along with relevant issuer metrics.
Tracking core ESG data from disclosures like annual reports, CSRs, 10-k filings and transforming them to fit into the desired ESG framework—like SFDR and SASB—needs advanced extraction capabilities.
Extracting ESG data from disclosures is the primary methodology for ESG data strategy today. While quantitative metrics are easy to track and are similar across strategies, qualitative data points vary depending on multiple factors. The data extracted also needs to fit into an ESG framework, including TCFD, SASB, and custom frameworks, depending on the overall ESG and investment strategy. Sometimes this may also take the form of scores, in which case, the metrics must be transformed accordingly.
Qualitative data points pose a unique challenge. They can produce different results. Variations can occur due to the data owner's definition, the engine's training context, or the engine or analyst extracting the data.
Other challenges companies face while extracting the core ESG data from disclosures include
Straive Data platform (SDP) uses an advanced auto extraction data engine to pull data from Annual Reports, CSR Reports, etc.