Business Situation
As a premier global stock exchange and one of the foremost providers of sustainability-linked indices, the client aimed to deepen its coverage of the sustainable bond universe. Specifically, they sought to:
- Aggregate and analyze three years of historical data across over 1,500 sustainable bond issuers globally
- Extract and verify insights from sustainable bond frameworks, project-level fund allocations, and impact performance metrics
- Integrate this data into existing index methodologies to enhance transparency, reliability, and investor trust
The scale, complexity, and unstructured nature of environmental, social, and governance (ESG) disclosures required a blend of advanced technology and deep domain insight.
SGA Approach
Chosen as a strategic data partner, SG Analytics (SGA) designed and delivered a future-ready data intelligence framework powered by automation, governance, and ESG expertise. The engagement brought together artificial intelligence (AI) tools and skilled analysts to ensure data quality, contextual understanding, and defensibility.
Our Integrated Human + AI Solution
1. Strategic Alignment & Scope Definition
- Conducted multi-stakeholder workshops to define data needs, key performance indicator (KPI) taxonomies, and reporting expectations
- Designed structured templates aligned with ICMA principles and UN SDG targets
- Mapped integration pathways into the client’s index construction models
2. Intelligent Data Extraction Using IDEAT
- Deployed Intelligent Data Extraction and Automation Tagging (IDEAT) to scan and classify data from:
– Over 4,000 impact allocation reports
– Over 2,000 current and more than 3,000 historical bond framework documents
– Bond prospectuses, ESG disclosures, and financial filings - Enabled real-time categorization of environmental and social KPIs, including emissions avoided, renewable capacity, and access-to-services metrics
3. ESG Expert Oversight & Analysis
- A dedicated team of 20 ESG analysts ensured contextual interpretation of impact metrics
- Analysts validated claims on emissions reduction, social infrastructure development, and water or energy access using global ESG frameworks
- Reviewed comparability and materiality to filter greenwashing risks and ensure investor-grade insights
4. Workflow Governance & Delivery Assurance
- Implemented Public Monitoring Tool (PMT) for streamlined workflow governance with:
– Real-time automated document tracking
– Structured task management with role-based assignments and prioritized execution - Delivered transparency and audit-readiness across all project stages
5. Multi-Layered QA & Index Simulation
- Created tiered quality assurance protocols and automated validation, combined with expert-led reviews
- Simulated integration into index calculation systems to ensure data compatibility and integrity
Key Takeaways
- Technology Accelerated Scale: IDEAT enabled high-precision extraction and classification of complex, unstructured ESG disclosures from over 9,000 documents, significantly accelerating data processing without compromising accuracy.
- Credibility Anchored in Domain Expertise: ESG analysts brought essential contextual intelligence, interpreting nuanced disclosures, validating over 300 material impact metrics, and aligning outputs with global standards such as ICMA and the UN SDGs.
- Robust Governance & Transparency: PMT offered centralized workflow control, risk mitigation, and traceability across all data processing layers.
