At a.s.r. we pay special attention to people, the environment and society. It is embedded in our DNA and therefore also in our investment policy. Strategic innovation and digitalization is essential in this regard. This is why a.s.r. has established an ESG research center together with the University of Amsterdam (UvA) on July 1, 2023: Research Centre for Sustainable Investments & Insurance (RCSII).
ESG data, analytics and AI
With the rising importance of ESG as a global theme, the amount of ESG data is increasing daily. Companies have to provide (more and more) ESG data, but are often still largely allowed to interpret this themselves in terms of content and form. This stands in the way of a thorough ESG analysis or comparison. Artificial Intelligence (AI) is an emerging trend that can be used to analyze large amounts of unstructured (textual) data. The UvA has a good reputation in the field of AI and has already collaborated with several financial institutions. Reason to join forces. In the RCSII, a.s.r and the UvA are bringing together their knowledge and experience to investigate how, among other things with the help of AI, ESG data can be analyzed better and more easily. For example, impact can be measured and greenwashing detected.
The research
Over a 6-year time frame, the RCSII maintains three lines of research with 2 separate topics each:
- Quantifying ESG risks in:
- Real estate and mortgages
- Insurance and financial portfolios
- The impact of 'impact investing':
- Quantifying impact investing with AI
- Identifying how clients respond to various ESG measurement tools
- Scores on climate goals and greenwashing:
- The extent to which companies are aligned with SDGs and climate and biodiversity action plans
- Detecting greenwashing
The research lines will not start all three at the same time. Right now (mid-2024), research on ESG risks on real estate and mortgages, quantifying the impact of investments with AI and detecting greenwashing has begun. The remaining lines of research will follow in the coming years. By May 2025, the final research will start.
The research involves 3 PhD students and 3 post-doctoral researchers from the UvA, together with their supervisors. The overall research should ultimately lead to innovative techniques for digitizing ESG data, efficiently analyzing relevant ESG data and scalability of both.
Together toward a more sustainable world
With the research results, we not only want to strengthen our ESG position and make ourselves less dependent on third parties for ESG insights and trends. We also want to take society and the financial sector as a whole further in the field of ESG with this public-private partnership. In this way, together we are taking another step towards a more sustainable world.
