I sat down with George Lee, founder and CEO of Hydrus. ai in San Francisco, to talk about environmental, social and governance (ESG) reporting, how they are leveraged, and how corporations can leverage data, analytics, and fraud to mejorar. su visibility with investors. What began as a technocratic duty has turned into political gas. Considered a leading environmental company for its electric vehicles, Tesla has been eliminated from the S.
A: “Green whitewashing” in ESG, the misleading marketing that a product or service is less eco-friendly than claimed, has been challenging and goes back decades. The previous terminology was CSR or corporate social responsibility. Over time, “environment, social and governance” have emerged as the 3 most sensitive sustainability challenges facing companies.
One of the proposed pricing proposals for ESG/CSR is to improve a company’s sales, marketing and branding. However, ESG can backfire on a company and diminish its assets. Various stakeholders (e. g. , lenders, scoring agencies) are not easy. more ESG information, creating reporting headaches and incomprehensible criteria widely implemented in corporations with poor visibility, especially around environmental and social factors. In turn, activists and the media exploit non-financial signals communicated through corporations to make negative accusations and statements.
In fact, the ESG reporting procedure has been complicated; organizations rent ESG exports to play with intended ESG knowledge. These Excel sheets and reports typically lack auditability. Traditionally, software has served this industry poorly and is made up of many teams that are not intended for quantitative or qualitative knowledge management.
Fortunately, Hydrus. ai solves this and links knowledge with auditing, accounting, and other applicable parameters. The software controls and audits the process of generating reports and gathering knowledge.
Wall Street corporations have the strength to require control to meet ESG criteria to continue receiving investments. Blackrock and other giant money establishments have learned that they can make ESG make an investment in a successful business by charging fees for “green” investment products. These products are created with negative and indistinct sectoral filtering, so investments in categories such as firearms, oil/gas, tobacco, etc. are automatically excluded and considered non-ESG.
If the company complies with those subjective ESG standards, it is sold and excluded from investments only in the publicly traded budget (ETF), but also in the pension budget and sovereign institutional investments (especially in Europe with the Sustainable Finance Disclosure Regulation or SFDR).
This transition in monetary investment alone has a greater threat to U. S. national security. In the U. S. in relation to infrastructure, as industries, energy, manufacturing, transportation, and many classic sectors have insufficient investment. As such, they are arbitrarily regarded as non-ESG when other measures can only legitimately address those factors.
Only knowledge audited and transparent with a disclosed method can be reliable, e. g. how greenhouse fuel calculations were performed, which method was used (AR4 vs AR5, etc. ).
The knowledge of DEI has been had for some time, but it is not perfect. There may be significant and potentially negative discrepancies between a company’s intent and conclusions drawn from DEI’s knowledge. It is imperative to know precisely how INN knowledge works. received and reported. Some HR professionals have made primary errors of judgment.
For example, I’m ethnically Asian, but Accenture, a Fortune 500 consulting firm with more than 500,000 employees, classified me as “Caucasian/white” in their Workday HR system. I never specified my ethnicity when I joined the company, so how do they “assume” my ethnicity?
What categories exist for gender, ethnicity, and other FDI spaces?There are no commonly accepted popular reports for DCI.
Companies like BlackRock say they will “increase the number of black workers by 30% through 2024,” but that doesn’t mean much without context. people. Many DEI reports, statistics, and communications are inherently misleading.
Similarly, BlackRock said it would “give $5 million to organizations that focus on racial equity. “But this declaration of “justice” is not connected to a tangible and identified measure. This is tantamount to pointing out an egocentric virtue. In any case, $5 million is a drop in the ocean for BlackRock.
Many software marketers would possibly be ideologically aligned with ESG and DCI goals and design software to overestimate or underestimate applicable data. much like “Business 101”. The bottom line is that the ESG measure has nuances.
Most ESG and DEI software platforms have been designed for purposes unrelated to those goals, for example, social media has an effect on monitoring knowledge, fitness and safety, measuring greenhouse fuels, etc. Copying and pasting those measures for corporate communication can be risky.
It is critical that ESG software, as it should be, reflects the intended measure rather than simply translating the thinking of the software developer or entrepreneur. biases that can confuse corporate information.
ESG ratings, criteria, and reporting are very subjective. Ratings like MSCI, Refinitiv, S
The same doctorate. Educators who publish educational studies also work for rating agencies, creating conflicts of interest and “principal-agent” problems like the 2008 currency crisis. Roberto Rigobon del Mit’s “The Aggregate Confusion Project” noted that bond ratings are uniformly correlated at 0. 9, but ESG ratings are correlated at 0. 6.
ESG criteria and reporting cannot be standardized globally due to local differences in culture, values and industry, resulting in the same ESG principles being assessed across companies. In fact, blind request for knowledge can minimize innovation and expansion can minimize and indeed creates an incentive for overestimation.
Hydrus solves the challenge with a built-in and highly differentiated approach. We make noise by automating the collection of raw data from a variety of resources ranging from finance to energy to human resources. As all knowledge is aggregated into a single formula and cryptographically connected to the corresponding actor. or transaction, the ability to audit and analyze knowledge improves considerably. Customers have greater confidence that the resulting data is accurate, meaningful, and actionable.
George Lee, Founder and CEO, Hydrus. ai