Overview:
Environmental, Social, and Governance (ESG) investing is no longer relying on self-reported data. AI systems now analyze satellite images, IoT sensors, and NLP to score companies in real time.
Live Projects:
Companies like Clarity AI, Descartes Labs, and Arabesque are building ESG scoring engines that detect:
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Factory pollution via satellite thermal scans
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Deforestation around supply chains
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Labor violations from news sentiment analysis
Impact:
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Investors gain independent, non-manipulated ESG data
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Asset managers can automate ESG inclusion/exclusion
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Companies are pushed toward real accountability
Risks:
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False positives from poor data
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Greenwashing via algorithm gaming
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Data privacy concerns with satellite imagery
Takeaway:
AI is making ESG measurable and machine-verifiable—not just a checkbox.
