Ebook: Shaping the future of ESG Ratings: Regulatory Shifts and AI Innovation

Paris, France – June 25, 2024 – SESAMm, a leader in AI-powered text analysis for financial services, proudly announces its inclusion in the AIFinTech100 list by FinTech Global for the second consecutive year. This recognition highlights SESAMm's commitment to sustainability and ESG through the application of advanced AI technologies.

FinTech Global's annual AIFinTech100 list, now in its fourth year, showcases the top 100 AI companies that are revolutionizing the financial services industry. The list is carefully curated by a panel of industry experts who evaluate over 2,000 fintech companies worldwide. This year’s criteria focused on the transformative impact and the innovative use of generative AI in financial services, from banking and insurance to investment and customer experience.

"We are honored to be listed again on the AIFinTech100. This recognition highlights our leadership in employing AI to detect ESG controversies, helping our clients proactively manage risks and uphold sustainability commitments,” said Sylvain Forté, SESAMm’s CEO. “At SESAMm, we aim to transform financial analysis by ensuring it is as responsible as innovative."

FinTech Global director Richard Sachar said "SESAMm has been selected for the AIFinTech100 list due to their exceptional capabilities in ESG controversy detection using AI. Their technology plays a pivotal role in enabling the financial industry to address and navigate ESG risks effectively, marking a significant advancement in sustainable finance."

The inclusion of SESAMm in this year's AIFinTech100 comes at a time when the financial sector is increasingly relying on AI to enhance operational efficiencies and customer interactions. With AI investments in FinTech expected to reach $44.08 billion by 2024, SESAMm continues to lead the charge by providing cutting-edge solutions that address the complex needs of today’s financial institutions.

About SESAMm

SESAMm is an innovative fintech firm specializing in AI-powered text analysis for asset managers, private equity firms, and financial institutions. Its flagship product, TextReveal, offers actionable insights into ESG risks and investment opportunities, cementing SESAMm’s role as a leading provider of financial intelligence and predictive analytics.

For more information about SESAMm and its innovative solutions, please visit www.sesamm.com.

SESAMm’s AI Technology Reveals ESG Insights

Discover unparalleled insights into ESG controversies, risks, and opportunities across industries. Learn more about how SESAMm can help you analyze millions of private and public companies using AI-powered text analysis tools.

Forced labor remains a critical challenge for global businesses. Recent scandals across industrial and consumer sectors have shown how quickly hidden labor abuses can surface, sparking regulatory action, investor backlash, and lasting reputational damage.

Watch this webinar replay to hear Emily Day, Global Sustainability Specialist at Diginex, and Andrew Bernstein, Chief Commercial Officer at SESAMm, share data-driven insights and real-world lessons on how to anticipate and manage these risks effectively.

You’ll learn:

• The evolving regulatory landscape and its implications for investors and corporations
• Real-world case studies of forced labor controversies and their financial impact
• How leading firms are strengthening risk detection and due diligence to stay ahead of compliance and reputational challenges
  

Environmental, social, and corporate governance practices have been under scrutiny for the past year. In this article, we focus on the most significant ESG controversies related to the environment. Our research provides a detailed overview of the top environmental issues that surfaced during the year, highlighting the most talked-about controversies and the companies involved. We dive into each of these issues, analyzing their impact on the environment.

Environmental Risks: Focus 2023

We outlined the prominent risks in 2023: social risks, with layoffs and strikes gaining attention; environmental risks, marked by wildfires and oil spills; and governance risks, where tax evasion and ethical violations like bribery were in focus. Each risk category underscores the urgent issues facing society and the need for accountability and action.

Environmental Controversies of 2023

Environmental risks may not match the sheer number of mentions that social risks receive, but their presence in discussions has steadily grown over the year, particularly in the third quarter. Let's explore the most common controversies that have emerged.

Climate Change and Policy

Climate change dominated environmental discussions in 2023. A noticeable peak in mentions arose in the latter half of the year, particularly around heatwaves and debates surrounding climate policies.

Atmospheric Emissions

September saw increased discussions about atmospheric emissions, notably due to the emissions from volcanic eruptions,  hybrid cars, and the discovery of toxic metals in food products.

Impact on Biodiversity

The wildfires that spread in June sparked significant debates around their impact on biodiversity, leading to increased mentions and concerns related to environmental preservation.

Top 5 Environmental Controversies

These controversies are ranked by relative volume*.

• Marathon Petroleum
  

Volume of mentions: 62

Relative volume: 69%

A significant portion of environmental risk discussions surrounding Marathon Petroleum was due to its chemical leak in Garyville. This incident led to massive fires, so large they could be observed from space. (source)

• Nestlé
  

Volume of mentions: 30

Relative volume: 54%

Nestlé faced scrutiny in 2023, with over half of its environmental risk mentions associated with drought controversies. The company was urged to cease its water mining activities following severe droughts in France. (source)

• Coca-Cola
  

Volume of mentions: 178

Relative volume: 53%

Coca-Cola garnered attention due to a hydrochloric acid leak in January 2023, leading to significant environmental concerns. (source)

• ExxonMobil
  

Volume of mentions: 571

Relative volume: 31%

Exxon, along with Guyana’s environmental agency, was implicated in breaches of oil spill insurance policies. (source)

• Shell
  

Volume of mentions: 872

Relative volume: 23%

An oil spill from a Shell pipeline adversely affected farms and a river in a region of Nigeria already grappling with pollution. (source)

Conclusion

Environmental risks remain a significant concern for companies in various industries. The top 5 environmental controversies in 2023 were not only related to oil and gas companies but also included companies in other industries, such as Nestlé and Coca-Cola. These incidents underscore the importance for businesses to prioritize sustainability and take responsibility for their impact on the environment. By adopting sustainable practices and reducing their environmental footprint, companies can mitigate future risks and ensure long-term success.
Make sure to read the full article, which includes top controversies for social and governance topics here.

Relative volume*: Relative to the total volume of E, S, or G risks for the company during the same period.

SESAMm’s AI Technology Reveals ESG Insights

Discover unparalleled insights into ESG controversies, risks, and opportunities across industries. Learn more about how SESAMm can help you analyze millions of private and public companies using AI-powered text analysis tools.