Sustainable investing has gained significant traction in recent years, with both investors and executives recognizing the importance of considering environmental, social, and governance (ESG) factors when making investment decisions. As the demand for sustainable investment options continues to grow, companies like Clarity AI are leveraging advanced technologies to provide actionable data and insights on the sustainability and social impact of companies and funds. By harnessing the power of generative artificial intelligence (AI), machine learning, and analytics, Clarity AI aims to empower investors, consumers, and organisations to make more informed and sustainable choices.
We at SmartDev have been leveraging Clarity AI in turn to help clients maximise their sustainable investing potential while improving their ESG scores. This is a wise move that helps improve access to capital as well as promote sustainable development of all kinds. So how does this work and where’s it going? Let’s take a look.
The Rise of Sustainable Investing
Investors are increasingly prioritising sustainability when making investment decisions. According to recent data, global ESG fund assets experienced a significant increase, spiking 12% in the fourth quarter of 2022. This trend is expected to continue, with ESG fund assets projected to reach approximately $2.5 trillion by the end of 2023. The growing interest in sustainable investing is driven by the recognition that companies’ sustainability performance can have a significant impact on their financial performance and long-term success.
Clarity AI: A Technology Platform for Sustainable Investing
Clarity AI is a leading technology company that specialises in delivering environmental and social insights to ensure sustainable investment and purchasing decisions. Their platform, built on Amazon Web Services (AWS), leverages advanced technologies to analyse millions of data points and provide clear and objective data on more than 70,000 companies, 420,000 funds, and 400 local governments. By harnessing the power of generative AI, machine learning, and analytics, Clarity AI offers a comprehensive suite of sustainability analysis tools for investors, corporate researchers, benchmarking, consumer ecommerce, and regulatory reporting.
Leveraging Artificial Intelligence and Machine Learning
Clarity AI’s platform relies on artificial intelligence and machine learning algorithms to process and analyse vast amounts of data. Using generative AI models, Clarity AI trains up to 7 billion parameter large language models (LLMs) to detect, manage, and classify unstructured data points from various sources, including sustainability reports, financial reports, earnings calls, and research documents. This allows Clarity AI to extract valuable insights and identify companies that may be impacted by specific news events or environmental issues.
The platform’s natural language processing (NLP) capabilities enable the analysis of millions of news articles from trusted sources each day. By parsing this information, Clarity AI can identify potential controversies and evaluate their relevance to a company’s sustainability performance. This comprehensive approach ensures that Clarity AI has access to the latest data, allowing investors, researchers, and consumers to make informed decisions based on the most up-to-date insights.
Providing Actionable Data and Insights
Clarity AI’s platform goes beyond simply analysing data. It provides actionable data and insights that enable investors and consumers to make more sustainable choices. For investors, the platform offers tools for tracking, measuring, and optimising the social and sustainability impact of their investment portfolios. Through clear and objective data, investors can identify companies and funds that align with their sustainability goals and avoid those engaged in greenwashing or harmful environmental practices.
Consumers also benefit from Clarity AI’s platform, as it integrates with existing e-commerce environments to provide environmental analysis for various product categories, such as electronics, fashion and apparel, groceries and household brands, and health and beauty companies. By visually identifying sustainable brands and displaying sustainability performance badges, Clarity AI enables environmentally conscious shoppers to reward sustainable practices through their purchasing decisions.
The Role of AWS in Clarity AI’s Success
Clarity AI’s sustainable investing platform is built on AWS, which provides the necessary cloud services, flexibility, and scalability to support the company’s data-driven approach. AWS’s generative AI, machine learning, and analytics capabilities are instrumental in powering Clarity AI’s platform and enabling the analysis of vast amounts of data. The use of Amazon SageMaker, a fully managed service for building, training, and deploying ML models, allows Clarity AI to train large language models and NLP models efficiently.
Additionally, AWS’s security and compliance services, such as Amazon GuardDuty and AWS WAF, ensure the protection of data and help Clarity AI maintain regulatory compliance. The scalability of AWS infrastructure enables Clarity AI to handle the increasing volume of data and deliver real-time insights to users. Overall, AWS has played a pivotal role in supporting Clarity AI’s mission to deliver critical sustainability insights to investors, consumers, and organisations.
Collaborating for Success
Clarity AI’s collaboration with AWS has been instrumental in accelerating their business growth. Through the AWS Activate program for startups, Clarity AI has received training and advisory sessions with AWS experts, enabling them to introduce new services and capabilities with minimal friction. The program has also provided credits for experimentation, allowing Clarity AI to optimise their platform and improve operational efficiency.
AWS has also helped Clarity AI strengthen their infrastructure and operations through the AWS Well-Architected Framework. This has resulted in important certifications, including ISO 27001 and SOC 2 Type II. By leveraging AWS’s expertise and resources, Clarity AI has been able to enhance their platform and better serve their clients.
The Future of Sustainable Investing
As sustainability continues to gain prominence, the demand for reliable and actionable data will only increase. Clarity AI is committed to leveraging AWS’s generative AI and machine learning services to further advance their sustainability initiatives. Through technologies like Amazon Bedrock, Clarity AI aims to streamline their model development process and strengthen their inference capabilities, ensuring they provide the most comprehensive and accurate analysis possible.
With the combination of Clarity AI’s expertise in sustainability and AWS’s innovative technologies, the future of sustainable investing looks promising. By empowering investors, consumers, and organisations with the tools and insights needed to make informed decisions, Clarity AI is driving positive change and contributing to a more sustainable future.
Clarity with SmartDev
Sustainable investing is no longer a trend but a crucial aspect of decision-making for investors and consumers. Clarity AI’s technology platform, built on AWS, enables investors to track, measure, and optimise the social and sustainability impact of their portfolios. By leveraging artificial intelligence, machine learning, and analytics, Clarity AI delivers clear and actionable data on companies’ sustainability performance, helping investors make informed choices.
Furthermore, Clarity AI’s platform empowers consumers to support sustainable brands through their purchasing decisions. By integrating with ecommerce environments and providing environmental analysis, Clarity AI enables consumers to identify and reward brands that prioritise sustainability.
As Clarity AI continues to innovate with AWS’s generative AI and machine learning capabilities, the future of sustainable investing looks promising. By harnessing advanced technologies, Clarity AI aims to drive positive change and contribute to a more sustainable and socially responsible world.
Since SmartDev prioritises sustainability and has a thorough pedigree in the financial industry, working with us to maximise the potential of Clarity AI is simply a smart move. The power provided by AWS combined with customised projects via SmartDev can make for very powerful investment tools. Want to know what that could look like? Reach out to us to discuss a project. The future is sustainable, and we’re happy to be leading the charge.