Client - Synechron
Role - Product Designer
Project - Innovation Lab Accelerator
Business challenges
Institutional firms need to embrace ESG sooner rather than later. This is driven by a 'marked shift' from a traditional shareholder model to a stakeholder model.
A lack of uniformity and ESG definitions standardization has led to an explosion of data (providers) with varying ESG rating and ranking methodologies.
Product solution
A platform that helps analyze portfolios against ESG metrics. Integrating benchmarking using different ESG scores and indexes. Improving portfolio ESG score by proposing an “alternative portfolio” with minimal changes and also taking into account client preferences. Help easily extract reporting overviews of the recommendation/investment actions for further discussion or approval.
What is ESG?
Environmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. Environmental criteria consider how a company performs as a steward of nature. Social criteria examine how it manages relationships with employees, suppliers, customers, and the communities where it operates.
-Investopedia
About this platform
This platform helps analyze portfolios against ESG metrics. Integrating benchmarking using different ESG scores and indexes. Improving portfolio ESG score by proposing an “alternative portfolio” with minimal changes and also taking into account client preferences. Help easily extract reporting overviews of the recommendation/investment actions for further discussion or approval
Portfolio Dashboard
On the portfolio dashboard, users can view the health of their portfolio based on the total ESG, comparison of their portfolio against other benchmarks and highest ranking companies.
Company Analysis
Review overall ESG Score for each company. Each category is broken down for a granularity. For instance, we can see how the Environmental score is broken down further to resource use, emissions and innovations.
Swap Companies
If there are companies that have a lower ESG score, we can find alternative companies to replace poor performing ones based on sector and industry. The system is smart enough to find other company in within the same sector.
News & Events
News sentiment has a direct impact on the ESG score. Review which new articles are having the greatest impact on the performance.
Forecasting
Projection of portfolio’s performance based on the list of companies.
Simulating Company Swaps
Simulation helps portfolio managers simulate what the performance of their portfolio could be if they replace poorer performing companies with higher performing ones. Simulating helps visualize a hypothetical scenario before applying real changes.
Investable Universe
The database on companies are fed to the investable universe. Portfolio manager’s can help filter down the list of companies based on the ESG performance they are setting for.
Project’s Outcome
This project has gained major interest with a several large financial institutions. We continued to personalize the user experience through client feedback.