When considering sustainable initiatives in asset allocation initiatives, investors often struggle with measuring the numerous Environmental, Social, and Governance (ESG) dimensions; however, in this paper, Mike Chen, George Mussalli, Amir Amel-Zadeh, and Michael Weinberg propose that machine learning (ML) and natural language processing (NLP) can be used to assess if companies are aligned with the UN Sustainable Development Goals (SDG). The writers provide initial proof of concept of how investors can apply ML and NLP techniques to overcome challenges in measuring companies’ contribution to the SDGs and propose new avenues of research for how ML and NLPs can be used for SDPs. George Mussalli, PanAgora’s Chief Investment Officer and Head of Equity Research, Mike Chen, PanAgora’s Director of Portfolio Management and Sustainable Investing, Amir Amel-Zadeh Associate Professor at Saïd Business School, University of Oxford, and Michael Weinberg Adjunct Professor at Columbia Business School discuss how to measure corporate alignment with sustainable development goals.

Request Paper