Commentaries

Nowcasting CO2 emission intensity for decarbonised equity portfolios

15 November 2021

Cyrille Joye

Partnering with CERES (ceres.org), RAM AI is participating in the Sustainable Financial Hack 2021 organised by Open Geneva on November 26-27th 2021, as part of the Building Bridges Week.

The Challenge:

When building a low-carbon equity portfolio, disclosed carbon emission data are typically used.

As those emissions are reported with an important lag (potentially more than 1 year), the stock allocation doesn't include recent changes in the firm footprints, which cause a sub-optimal portfolio construction. Here, the goal is to build portfolio prototypes that account for historical emission numbers by analysing firms' commitment toward decarbonisation through their annual reports using AI and Natural Language Processing techniques.

Dataset: 

  • CERES/CookESG Research – SEC Sustainability Disclosure Search Tool
  • RAM Historic Company Carbon Emissions

Join the challenge here