Innovation Challenges

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Data-driven Environmental, Social and Governance Assessment for Sustainable Investing (closed)

Fidelity International
This challenge has closed.
Tags: Data, Social Governance, Environmental Governance, Governance, Investing, Sustainable Investing, Investors
Audience: Students, Researchers, Start-Ups, Businesses, Subject Matter Experts, Other
Anticipated Funding: SGD 50,000
Applications close: February 14, 2020
Last Updated: February 16, 2020 10:05 PM
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The Challenge

Fidelity International (FIL) offers world class investment solutions and retirement expertise to institutions, individuals and their advisers around the world. Our vision is to deliver innovative client solutions for a better future. FIL understands the growing consumer demand for sustainable activity, including sustainable investing and notes how the UN Sustainable Development Goals (SDGs) are being adopted by companies to guide their actions and respond to the expectations of their customers.

Investors and consumers are increasingly focused on the importance of considering non-financial factors when making their investment decisions. These three factors, environmental, social and corporate governance (ESG), to measure and evaluate how a corporate behave towards sustainability, has long been integrated throughout FIL’s investment process.

A ‘Sustainable Family’ of funds has marked our next step in our evolving approach to sustainable investing in order to meet the growing demands of our clients around the world. Fidelity’s Sustainable Family offers two investment categories - best-in-class and sustainable thematic - with the best-in-class funds actively seeking to select companies that are high ESG performers relative to peers. As for the sustainable thematic funds, it uses an investment approach that contributes to addressing sustainability challenges or creating a positive value-add to society and the environment.

We are therefore very interested in being able to quantify the sustainable impact of a fund/ portfolio. What impact does a fund have and to what degree?

Some of the issues for why there is not yet a technology driven solution to assess sustainable impacts of a portfolio of stocks are:

  • Many differing approaches and measurements to what is meant by sustainability and impact.
  • Relevant and Quantifiable factors that can capture degree of ESG/sustainable impact.
  • How best to capture exposure to relevant ESG’s factors within the funds.
  • ESG data may not be fully disclosed by certain companies or is disclosed across different filings and locations.

Therefore, FIL is seeking to encourage a digital solution to measure a fund’s sustainable impact that may include assessing the non-financial characteristics and actions of companies in a portfolio, against ESG performance indicators, key ESG best practice criteria and other frameworks such as the UN’s SDGs.

The Problem Statement

How can we use technology to better quantify sustainable (ESG) impact of a portfolio?

What They Are Looking For

  • A prototype solution/ tool that can identify, quantify, gather, and track the sustainable (ESG) impact of a portfolio of specific stocks.
    • A credible and clearly explainable approach and methodology that underpins the framework supporting the tool.
    • Presentable and clean output that adds value to our understanding of the sustainable impact of our funds that can be provided to our investment team and clients.

There are no restrictions on the geographic location of the problem solvers who may choose to apply to this challenge. However, the prototype needs to be demonstrated in Singapore.

Eligibility Criteria

There are no restrictions on the geographic location of the problem solvers who may choose to apply to this challenge. However, the prototype needs to be demonstrated in Singapore.

You, (or any of your teammates, if you are participating in the Challenge as a team) must not be a current employee of (a) FIL, or (b) any other organisation who is involved in administering or organising the Challenge (including IMDA). 

For full details on this challenge please see the SG:D Open Innovation Platform website.

Terms and Conditions

For full details on this challenge please see the SG:D Open Innovation Platform website.

How to Apply

To apply for this challenge please see the SG:D Open Innovation Platform website.

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