Covalence Switches On Sincerity Detector

Stockholm (NordSIP) – Investors and regulators increasingly sound the alarm about companies that seem to be exaggerating or misrepresenting their environmental credentials. Suspicions apart, greenwashing can be challenging to detect, quantify, and monitor in a systematic way. Lately, however, advanced technology has joined the fight against greenwashing. University professors from Dublin to Zurich have been busy developing artificial intelligence guardians, such as GreenWatch and ClimateBert, ready to assist human analysts in unveiling corporate cheaters.

Geneva-based ESG data provider Covalence is yet another actor proud to enlist the help of AI to track inconsistencies between a company’s promises and actions regarding sustainability. On 22 August, the company published a whitepaper describing the greenwashing risk indicator they have developed to enhance their current ESG rating system. According to Covalence, the new indicator is a kind of “sincerity detector”. It offers a more realistic picture of companies’ ESG credentials while enabling investors to assess the credibility of sustainability commitments, analyse ESG risks, identify future leaders and spot companies showing the most progress. More…

Source: NordSIP