Global bank HSBC has unveiled an AI-backed ESG Risk Improvers Index, in partnership with advisory and technology company Arabesque AI. This marks the first time that HSBC has offered a global index utilising AI to assist in the measurement of a company’s ESG credentials improvement. The index used data from public markets ESG data and analytics provider ESG Book, formerly known as Arabesque S-Ray, to monitor the performance more than 1,000 liquid stocks from global companies that are expected to profit from improvements in their ESG risk metrics. ESG Book calculates the ESG score of each constituent of the Index through natural language processing to examine relevant public sources daily, including ESG-related news and NGO data. Arabesque AI then calculates an ‘ESG momentum score’ which is evaluated every six months to assess whether each constituent has improved their ESG credentials. Investors will be able to invest in a range of products tracking the index, allocating capital toward ‘ESG improvers’.
