To get anywhere close to the net-zero carbon emissions by 2050, we must encourage more shareholders to hold their companies to account.
We have taken a novel approach by searching for climate change and other ethical issues within the questions asked by institutions of each investor. Who were posing the big, uncomfortable yet necessary questions on climate change policies? Who were the first to rate these points as important as profits? Our findings are based on analysing transcripts of investor meetings for the top 1000 companies.
For example, here is the transcript ESG breakdown for Apple 2016 – 2020.
Who are asking the tough questions and what is being asked ?
We reviewed over 20,128 transcripts. We found that words such as “sustainability” and “renewable” are the most frequently used. While this is good, we must be careful of the problem of green-washing (we will cover this in another article).More focused terms such as “CO2” that feature in the top 5 words used is a promising sign.
We reviewed 938 institutions, big banks are the leaders in terms of number of questions asked about climate change action and social opportunities. The split is close to 50/50 between these two topics.
Machine Learning Technology
The analysis was produced by our RnD team specialising in natural language processing (NLP) and in particular name entity recognition (NER / GENRE). This allows us to do things like matching speakers with their employers (e.g. Barclays), creating single groups allowing us to identify exactly which company is speaking. We then ran all transcripts analysis on a graphical processing unit (GPU) server.
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