Finance Monthly September 2021 Edition

Rising The Potential of Alt-Data Collection Within ESG The use of alternative ESG data (ESG alt-data) by institutional investors is growing in popularity. Factset estimates that around 70% of global investment companies are still exploring how to best deploy and understand the growing opportunity presented by ESG alt-data. A Vanson Bourne survey also revealed organisations that incorporate ESG alt-data into their business strategies found that an average of 76% (USA) and 67% (UK) of their investment decisions are now informed by ESG factors. This type of research highlights the importance of ESG considerations in investing and demonstrates the importance that organisations place on environmental and social impact when doing business. It’s no wonder that most professional investors out there, having seen the value that this data can deliver to their clients, are now exploring more avenues for collecting ESG alt-data. Ultimately, this information is mission critical for savvy investors. But before you decide to make use of ESG alt-data, you need to first understand clearly what it is, what its benefits and limitations are, and how you can most effectively deploy it to help your business’s decision-making be more impactful and successful. Omri Orgad, Regional Managing Director at Bright Data, tells us all about it. Omri Orgad - Regional Managing Director at Bright Data INVESTMENT - ALT-DATA COLLECTION 59 www.finance-monthly.com