TCS collaborates with AWS to simplify ESG investment analysis, decision making

Tata Consultancy Services (TCS) has launched its ESG (Environmental, Social, Governance) integration solution on the Amazon Web Services (AWS) platform to help financial institutions more easily and accurately measure the impact of ESG factors in their investment analysis.

Consisting of a cloud-native ESG data ingestion platform and custom ESG scoring model, the solution is integrated with AWS Data Exchange and allows more transparency and flexibility to align investment portfolios with ESG criteria. It also measures them against quantifiable and standardised sustainability benchmarks, said an official statement.

AWS data exchange helps customers find, subscribe to, and use third-party data in the AWS Cloud with ease.

The solution uses AWS analytics, artificial intelligence, and machine learning capabilities which lets uncovering of new insights at sectoral, regional, and corporate levels, allowing users to create a portfolio of strong ESG performers.

Offered as a microservice, asset managers (who monitor and manage a company’s assets by acquiring, maintaining, and trading investments) can access the latest versions of the ESG datasets and scale it up or down to meet demand with no additional infrastructure management.

Microservices are software system to construct a single application as a collection of services whereby the services are detailed and protocols are lightweight.

The solution allows investment managers to obtain non-financial data quickly and easily from leading data sources including ESG data providers on the AWS Data Exchange and thereby enable setting and tracking key performance criteria unique to their needs and evolving regulatory requirements.

“Progressive financial managers increasingly use environmental, social and governance factors to identify risk, monitor performance, and create differentiated investment propositions,” said K Krithivasan, Business Group Head, Banking, Financial Services, and Insurance, TCS.

“Cloud can act as a driver for sustainability. By providing an integrated 360-degree vision of the ESG performance of companies and insight into the real-world impact of investments in terms of the United Nations’ Sustainable Development Goals, asset managers are afforded the transparency today and flexibility tomorrow to adapt to future changes to create differentiated investment products, services and customer experiences.”