15 Best ESG Artificial Intelligence Software Options for Investing

Artificial intelligence is becoming more and more important in our society. With its ability to help us make better decisions, AI is becoming a valuable asset for businesses and individuals alike.

But with so many companies claiming to offer AI services, it can be challenging to know who to trust. That is why we put together a list of the best ESG artificial intelligence software and companies.

What is ESG Artificial Intelligence (AI)?

Artificial intelligence (AI) can be analyzed by companies to assess environmental, social, and governance challenges and opportunities.

ESG is an abbreviation that stands for environmental, social, and governance. AI helps investors analyze ESG factors to make better investments according to the data collected and analyzed. That is done based on the three pillars of sustainable investing.

AI is capable of helping a sustainable investor process vast quantities of data that can be used to invest in ESGs. If you are a content manager, you can think of natural language processing (NLP) and deep learning as examples of AI.

How can AI help with ESG?

Investors benefit from AI in ESG information in both structured and unstructured forms. AI helps extract data relevant to existing data sources and information. Such include investment analyses and recommendations.

The advantages for investment professionals in deploying AI for ESG go beyond the benefits for investors. Fund managers, consultants, and analysts can also use AI technologies to help automate processes.

AI elements infographic: neural networks, machine learning, deep learning, NLP, cognitive computing, computer vision.

So they can focus on higher-value tasks and provide insights to their clients.

What is ESG investing?

The acronym ESG refers to Environmental, Social, and Governance (ESG) investing. Investors are now paying greater attention to non-financial factors in their risk assessment. ESG indicators are becoming more common in quarterly and independent sustainability reports. However, they are not typically required in company financial reports.

ESG investing involves using ESG and climate data to support investment decision-making.

How Does AI Help Find ESG Opportunities?

ESG investing is becoming more important than ever. And artificial intelligence can help us find the best opportunities. By processing big data, AI can help us identify environmentally friendly companies.

These are socially responsible and good stewards of their shareholder’s money. This is essential information for sustainable investors who want to make the most impact with their money.

How can tech help in ESG?

It can help investors understand environmental, social, and governance risks. Also, it provides potential opportunities faster than ever before.

It has been said that humans are illiterate in the big data world. That means we cannot read the information within it with any real operational meaning. That is where artificial intelligence steps in to assist. It gives deep insights into what we are analyzing and how it can impact our decisions.

ESG data is no different. With AI, we can identify correlations, trends, and outliers. These would otherwise be buried in a deluge of information. Doing so helps us to better assess ESG risks and opportunities as they emerge.

Best ESG Artificial Intelligence Software

The demand for ESG investing has been on the rise. Social unrest and climate change mount pressure on companies to integrate ESG and financial systems.

ESG analysis has become an increasingly important part of the investing process. Most investors are now integrating ESG data, ESG factors, and ESG metrics in that process. This step makes it possible to understand the companies in which they invest.

The use of Artificial Intelligence (AI) software has increased human understanding of big data. Identifying the outliers and information buried deep in a pile of reliable data is now easy.

So, which are the best ESG AI companies or software to consider? Read on as we unveil the best that promote sustainable investing.

1. MSCI

MSCI works with more than 1,700 clients globally. They include investment managers, consultants, pension funds, banks, and insurers. You can also become part of the MSCI community if you want ESG integration in your investment process.

It has risen to the top due to the many tools it has. These tools use AI to analyze ESG data, measure ESG criteria, and provide insights into the investment process.

The MSCI ESG research tools allow you to explore unstructured data on different ESG factors. These include the temperature rise, decarbonization targets, ESG issues, and MSCI ESG ratings. The intelligent tools check data sets from over 2,900 companies.

MSCI promotes responsible investment. It offers your ESG ratings and data, ESG indexes, ESG analytics, and real estate climate solution. MSCI has no data limitations.

See Related: Best ESG Target Date Funds

2. Potential

This is an all-in-one platform to help you meet your ESG and sustainability goals. This award-winning SaaS platform allows you to commission your community program faster.

Potential has many features. These include gamification and AI tools you can use to launch and run your program. It is full of in-house resources and steps to ESG integration to your operations.

You can configure your questions and applications to suit your data collection needs. It also allows you to gather insights into your community and engage with stakeholders.

Additionally, you can link Potential with more resources for sustainable investment.

3. Equilibrium

Most companies prefer keeping climate-related financial disclosures to themselves. That does them no good because of the increasing pressure on the ESG performance.

Equilibrium is the one-stop shop for ESG data management, reporting, and expert insights. You will have control over your structured data and disclose everything with confidence.

This software uses cutting-edge AI technology, insights, and strategic advisory. This enables it to meet your ESG data reporting and benchmarking needs.

Equilibrium allows you to spend more time on more valuable tasks. It has a team of specialists to help you set your carbon emission targets. It can also handle the following:

Choosing reporting frameworks
Connecting and structuring data
Automating complex tasks in the investment process

You can multitask and share your ESG performance across ESG metrics with Equilibrium. It also reports your ESG compliance and plans future ESG criteria with Equilibrium.

4. RIO

Machine learning has made sustainability investments available to everyone. This technology uses essential ESG factors. It analyzes them to help investors manage ESG risk and improve their impact on the planet.

These are both tremendous benefits. Rio provides an intelligent software platform to help you harness them.

Rio is suited for organizations of different sizes across the public, private, and investment sectors. Some big names on this list include JD, NHS, ABP, Little Freddie, Sanne, DS Smith, etc.

Use Rio to become a sustainable investor. Consumers, businesses, and investors like you can choose it. You will get an understanding of environmental and social impact.

Rio uses AI to offer data analysis, governance tools, and education. Different organizations need to achieve financial freedom.

The RIO’s Ai uses high computing power to filter important data and assess them. It then reports any climate risks and other insights. The result depends on the data quality.

You can upload new data into the RIO’s AI platform for it to automatically calculate your ESG ratings. It uses industry-standard guidance and current conversion rates to provide an accurate report.

5. RepRisk

RepRisk is one of the few ESG research providers using advanced machine learning. It does not depend only on the AI to provide ESG scores. RepRisk has professional analysts to analyze every short-term and long-term risk.

The risk analysis follows set rules based on an approved method to ensure data quality and depth. All clients can access this data to use for back-testing and quantitative analysis.

RepRisk gives you access to a database to help you make informed decisions about your investment approach on ESG and assess long-term risks.

This Ai application provider covers private companies and emerging markets.

Many institutional investors trust RepRisk for investment decision-making.

It is the first choice for banks, insurance providers, asset managers, and private equity and debt. Hedge funds, asset owners, corporates, government, and non-profit organizations can also use it.

RepRisk is a priceless conversion starter with companies on ESG issues. It brings tremendous benefits to different mainstream organizations and institutions. Many people think of it as a virtual assistant, only that it relies on machine learning algorithms.

6. IBM

The AI products and services are fragmented, but IBM has stood out. It is among the leading companies where high net worth investors buy AI stocks. But that is not all IBM has to offer.

IBM Environmental Intelligence Suite is an all-in-one service. Every business looking for sustainable finance can choose it. It combines weather, climate, operational data, and environmental performance management into one package.

The IBM AI programs offer help to expect and respond to climate risks. It is needed in sustainable decision-making if you need high energy efficiency. Through this platform, you can also get relevant information on top risks for businesses for a decade to come.

You can use this ESG AI software to assess your environmental impact through carbon emissions. It also reduces the complexity of regulatory compliance and reporting.

With the increasing pressure from customers and investors to become an environmental leader, IBM is your hope. Its AI capabilities are on another level, and many companies are already working with IBM.

Don’t be left out! If you are not already in, consider introducing IBM Environmental Intelligence Suite to your business. It will help you track ESG factors, predict impacts of climate change, gain insights, measure, and report on your environment-related data for ESG investing.

7. MESA

MESA also relies on machine learning and AI to help institutions follow the non-financial reporting directives. Other benefits include energy cost saving, reduced carbon emissions, and sustainability optimization.

MESA uses AI to optimize resource usage within your organization. That entails reducing the monthly mileage covered by the company vehicles. It also calculates the carbon emissions and pollutants that lead to climate change.

Your ESG performance is also benchmarked against the ESG ratings of your peers. These insights will allow you to optimize your own ESG factors.

Most importantly, MESA applies machine learning and artificial intelligence to sustainability issues. The computer programs produce suggestions on how to focus on investment while improving the impact on climate change. MESA will also help you optimize the cost of production.

MESA offers a modular approach to providing tailor-made solutions. You get the following if you choose MESA ESG AI software:

Stakeholder engagement
Analysis and materiality matrix
ESG ratings
Environmental reporting
Sustainability reporting

See Related: Best WealthFront Alternatives

8. Boosted AI

Boosted AI among the leading providers of a machine learning platform for global investors. It has granted access to ESG data from OWL Analytics that institutional investors can use when making investment choices.

Managers looking for portfolio construction can use the Boosted Insight tool to research a range of ESG metrics. Portfolio managers access the ESG data with the analysis and recommendations.

These are provided through machine learning. That information is essential when optimizing portfolios.

The AI feature of Boosted AI consolidates many ESG data and research to provide company ESG rankings. It calculates the score based on different performance indicators, which quantify the behavior of companies on material sustainability issues.

Boosted Insight suits asset managers of companies of all sizes. If you want to incorporate ESG into your investment strategies, choose Boosted AI.

Boosted AI is a proprietary cloud-based software with advanced, finance-specific deep learning to portfolio managers. You don’t need any computer science background or knowledge of computer programs to use it.

9. Sense Folio

Sense Folio is an ESG data and products provider, giving ESG investing insights. It analyzes over 20,000 companies every day. You can use its ESG framework to get more information on the ESG ratings for your company.

The Sense Folio ESG framework expands the ESG scores to its various components. It measures all ESG criteria, including 50 of them and 11 subcategories.

You can use the ESG scores from Sense Folio to backset your ESG investment strategy, establish a sustainability tracker for your company, and integrate ESG components with your risk management policy.

Sense Folio is the best choice for small businesses, medium-sized businesses, and large enterprises. It is trusted with many global companies for ESG data.

10. Truevalue Labs

Truevalue Labs offer data-driven solutions that enhance informed decision-making for investors. The service provider sources data from different sources every month. Investors or portfolio managers rely on that data to manage risks and optimize portfolios across many industries.

Truevalue Labs leverages the power of a variety of sentiment analysis programs including natural language processing, cognitive computing, and machine learning technology to offer actionable insights.

The products analyze big data in real-time and provide analytics from ESG issues. That seemingly complex task is completed at the speed of current events.

As the sustainability issue becomes increasingly important, Truevalue Labs is ready to offer the solution you need to identify data. It is the best choice of AI software for you if you are a researcher, analyst, portfolio manager of ESG funds, or a consumer. You will get all the information you need to understand your company’s performance.

11. ISS ESG

ISS ESG is an investment arm of Institutional Shareholder Services Inc, a leading provider of ESG solutions. It is used by asset owners, asset managers, and hedge funds.

This software boasts an in-depth understanding of the needs of institutional investors. It offers extensive investment research, data, and analytics.

With ISS ESG, you can develop and integrate responsible investing policies and practices. You can also engage responsible investment issues and track portfolio practices through screening solutions.

ISS ESG offers climate data, analytics, and advisory services to enhance sustainable investing. Its services allow people to understand, measure, and act on any activity contributing to climate change. Additionally, you get ESG research and ratings. With that, you can identify material opportunities and risks.

ISS ESG is the best choice for ESG investing or ESG performance analysis. You filter essential data for making informed investment decisions.

12. Owl Analytics

Owl Analytics is one of the leading financial data, research, and indexes providers. It helps clients worldwide to integrate alternative data sets such as ESG data into their investment strategy for better sustainability and performance.

You can use Owl Analytics for the following:

Systematic Strategies
Index development
Quantitative investing
Factor strategies
Portfolio Analytics/Reporting
Best-in-class ESG integration
ESG controversies
Product involvement data
Bespoke data collection

Owl Analytics is integrated with Bloomberg Enterprises Access Point to offer you alternative data, ESG data, and ESG sentiment data. Additionally, you get peer group analytics if you choose Owl Analytics.

13. Accern

Accern is one of the best choices for hedge funds, investment banks, asset managers, brokers, insurance, research firms, etc. It creates an AI workflow with a no-code development platform for data teams.

Accern can provide you with ESG data, research data, ESG sentiment data, alternative data, and stock-market data. The platform can help you to install AI in your organization faster than you ever thought.

Accern uses data harvested from billions of websites, Dow Jones Newswire, EDGAR SEC Filings, and other sources. It is scraped in real-time to derive over 60 metrics.

Accern is only available to clients in the United States. It may not be an option for you if you come from other regions.

14. Clarity AI

Clarity Ai offers a tech platform to help investors manage their environmental footprints by leveraging big data and machine learning. Its values proposition comprises data, ratings, and tools.

It has one of the world’s largest and most reliable databases of environmental and social impact data.

Its data is collected from over 30K companies, 198 countries, 187 local governments, and more than 200K funds. That was done through the combination of structured and unstructured data and the application of reliability algorithms.

Clarity AI provides ratings for ESG risks, ESG impact, UN SDGs, Climate, and impact of products and services on the environment. Besides, the rating customization and reporting are based on the client’s methodologies and impact preferences.

Clarity AI uses a highly advanced platform to allow seamless data analysis and reporting of all for sustainable investments and portfolios.

15. Arabesque S-Ray

Arabesque S-Ray is a global financial service provider. It focuses on advisory and data solutions. It uses big data and ESG metrics to assess the performance and sustainability of different companies for ESG investing.

Arabesque S-Ray offers services to investors, corporates, and many other shareholders. That helps them make informed decisions. By choosing Arabesque S-Ray, you can transition faster towards a more sustainable future.

Arabesque S-Ray scores companies based on different ESG metrics. Choose it for advisory and bespoke solutions.

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The Impact Investor

Kyle Kroeger, esteemed Purdue University alum and accomplished finance professional, brings a decade of invaluable experience from diverse finance roles in both small and large firms. An astute investor himself, Kyle adeptly navigates the spheres of corporate and client-side finance, always guiding with a principal investor’s sharp acumen.

Hailing from a lineage of industrious Midwestern entrepreneurs and creatives, his business instincts are deeply ingrained. This background fuels his entrepreneurial spirit and underpins his commitment to responsible investment. As the Founder and Owner of The Impact Investor, Kyle fervently advocates for increased awareness of ethically invested funds, empowering individuals to make judicious investment decisions.

Striving to marry financial prudence with positive societal impact, Kyle imparts practical strategies for saving and investing, underlined by a robust ethos of conscientious capitalism. His ambition transcends personal gain, aiming instead to spark transformative global change through the power of responsible investment.

When not immersed in the world of finance, he’s continually captivated by the cultural richness of new cities, relishing the opportunity to learn from diverse societies. This passion for travel is eloquently documented on his site, ViaTravelers.com, where you can delve into his unique experiences via his author profile.