Tata Consultancy Services’ ESG Integration Solution on AWS Provides Investment Managers with Access to Quantifiable, Standardized Data to Measure the Impact of ESG Actions and Make Better Decisions
Tata Consultancy Services (TCS) has launched its ESG Integration Solution on the Amazon Web Services (AWS) platform to help financial institutions more easily and accurately measure the impact of environmental, social, and governance (ESG) factors in their investment analysis.
“Progressive financial managers increasingly use environmental, social and governance factors to identify risk, monitor performance, and create differentiated investment propositions. Cloud can act as a driver for sustainability. By providing an integrated 360-degree vision of the ESG performance of companies and insight into the real-world impact of investments in terms of the United Nations’ Sustainable Development Goals, asset managers are afforded the transparency today and flexibility tomorrow to adapt to future changes to create differentiated investment products, services and customer experiences.”K Krithivasan, Business Group Head, Banking, Financial Services, and Insurance, TCS
Consisting of a cloud-native ESG data ingestion platform and custom ESG scoring model, the solution is integrated with AWS Data Exchange and allows more transparency and flexibility to align investment portfolios with ESG criteria and measure them against quantifiable and standardized sustainability benchmarks.
Despite the rising interest in incorporating non-financial factors, such as greenhouse gas emissions, into investment evaluation, a study found that 66% of asset managers reported data as an impediment to ESG integration.
Often, financial institutions face a costly and resource- and time-intensive process—sourcing and standardizing siloed data from a variety of third parties and proprietary measurements to be able to analyze the value of ESG factors.
The company stated, ‘TCS’ ESG Integration Solution enables investment managers to procure non-financial data quickly and easily from leading data sources—including ESG data providers on the AWS Data Exchange—and set and track key performance criteria unique to their needs and evolving regulatory requirements.’
The solution leverages the AWS analytics, artificial intelligence, and machine learning services and helps uncover new insights at sectoral, regional, and corporate levels, allowing users to create a portfolio of strong ESG performers. Offered as a microservice, asset managers can access the latest versions of the ESG datasets and scale it up or down to meet demand with no additional infrastructure management.
Celent called out the TCS ESG Integration Solution’s differentiated abilities to sanitize data from leading data providers, provide much-needed transparency across the ESG data ratings process, and create a 360-degree view of the ESG performance of investments.