Opaque ESG ratings are no longer satisfying investors, regulators and corporate leaders

AI August 3, 2022

In a recent report, The Forrester New Wave™: ESG Ratings, Data, And Analytics, Q3 2022, the independent research firm outlines that “Opaque ESG ratings are no longer satisfying investors, regulators, and corporate leaders.” Yet, “At the same time, leading providers in the space are making real strides to surface raw data that more sophisticated users can analyze themselves, use regulatory standards to design how and which data is collected, and open up their sources and methodologies so that users can reverse-engineer a score if they want to.”

Clarity AI has been at the forefront of this evolution in ESG analysis. Tracking and measuring progress for a more sustainable future is a complex, multi-dimensional, cross-border task. We firmly believe harnessing the power of technology is the best way to scale to a viable solution and produce one that is unbiased and wholly scientific and evidence-based.

Our approach has now been independently evaluated on 10 criteria and Clarity AI received a differentiated rating, the highest score possible across 7 of the 10: Analytics Capabilities, Standards Integrity, Presentation, Connections/Integrations, Execution Roadmap, Market Approach, and Product Vision.

The result was that Clarity AI was named a leader in “The Forrester New Wave™:  ESG Ratings, Data, And Analytics, Q3 2022.”

 

Forrester’s take on Clarity AI includes the following:

  • Offers strong analytics and user presentation capabilities. Clarity AI makes it easy for users to assess individual companies’ ESG-driven impact and benchmark it against peers (to support EU taxonomy-aligned reporting, for example). The web application is particularly well-designed and easy for users to navigate and explore.”
  • Is the best fit for companies that need to manage lots of ESG data. Many of Clarity AI’s financial services clients use it to model ESG data from a huge universe of companies and financial instruments in order to create and test new products and optimize portfolios.”

Additionally, Clarity AI clients, whom the analyst team at Forrester interviewed, had the following to say:

  • “They understood nuances that their competitors didn’t even know existed.”
  • “It’s very easy to see a company’s alignment with technical standards.”
  • “The process of connecting was seamless; it took only a month to get the API set up properly.”

A total of nine providers were evaluated in “The Forrester New Wave™:  ESG Ratings, Data, And Analytics” report. Among the nine, the Forrester report cites that Clarity AI has the highest strategy score.

Would you like to read the full report? Access it here.

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