Tata Consultancy Services (TCS) (BSE: 532540, NSE: TCS) has launched its ESG Integration Solution on the Amazon Web Services (AWS) platform to help financial institutions more easily and accurately measure the impact of environmental, social, and governance (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 and measure them against quantifiable and standardized sustainability benchmarks.
Despite the rising interest in incorporating non-financial factors, such as greenhouse gas emissions, into investment evaluation, a study found that 66% of asset managers reported data as an impediment to ESG integration. Often, financial institutions face a costly and resource- and time-intensive process—sourcing and standardizing siloed data from a variety of third parties and proprietary measurements to be able to analyze the value of ESG factors.
TCS’ ESG Integration Solution enables investment managers to procure non-financial data quickly and easily from leading data sources—including ESG data providers on the AWS Data Exchange—and set and track key performance criteria unique to their needs and evolving regulatory requirements. The solution leverages the AWS analytics, artificial intelligence, and machine learning services and helps uncover new insights at sectoral, regional, and corporate levels, allowing users to create a portfolio of strong ESG performers. Offered as a microservice, asset managers can access the latest versions of the ESG datasets and scale it up or down to meet demand with no additional infrastructure management.
“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.”
Celent called out the TCS ESG Integration Solution’s differentiated abilities to sanitize data from leading data providers, provide much-needed transparency across the ESG data ratings process, and create a 360-degree view of the ESG performance of investments.
TCS is an AWS Premier Tier Services Partner and Managed Cloud Services Provider with the AWS Financial Services Competency. TCS’ AWS Business Unit is a full-stack, multidisciplinary group that offers enterprise customers end-to-end services and solutions around cloud migration, application and data modernization, managed services, and industry-specific innovation leveraging AWS. TCS is an AWS Premier Consulting Partner, AWS Public Sector Partner, AWS Solution Provider Partner and AWS Public Sector Solution Provider. TCS’ large pool of AWS cloud-ready professionals leverage their domain knowledge and AWS technology building blocks to create transformational solutions contextualised to specific industry sub-verticals.
To learn more about the TCS ESG Integration Solution, visit https://www.tcs.com/sustainable-finance-esg-integration-solution or read the AWS Partner Network Blog.