https://github.com/prak112/esg-profile
Assessing stock-price fluctuations of companies based on their ESG-profiles
https://github.com/prak112/esg-profile
data-analysis-python pdf-scraping sustainability-score
Last synced: about 1 month ago
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Assessing stock-price fluctuations of companies based on their ESG-profiles
- Host: GitHub
- URL: https://github.com/prak112/esg-profile
- Owner: prak112
- License: mit
- Created: 2021-03-01T22:10:16.000Z (about 4 years ago)
- Default Branch: main
- Last Pushed: 2022-11-30T09:25:10.000Z (over 2 years ago)
- Last Synced: 2025-04-12T03:14:58.481Z (about 1 month ago)
- Topics: data-analysis-python, pdf-scraping, sustainability-score
- Language: Jupyter Notebook
- Homepage:
- Size: 2.11 MB
- Stars: 4
- Watchers: 2
- Forks: 1
- Open Issues: 0
-
Metadata Files:
- Readme: README.md
- License: LICENSE
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README
# Motivation 🚀
_Blog posts which motivated me to compose the project are:_
* **[Databricks, Engineering blog/tutorial post by Antoine Amend](https://databricks.com/blog/2020/07/10/a-data-driven-approach-to-environmental-social-and-governance.html)**
* **[Sustainometric blog post, ESG to SDGs](https://sustainometric.com/esg-to-sdgs-connected-paths-to-a-sustainable-future/)**
## _Abbreviations & Supplementary_ 🔤
- **ESG** -- [Environmental, Social and Governance](https://www.investopedia.com/terms/e/environmental-social-and-governance-esg-criteria.asp)
- **SDG** -- [Sustainable Developmental Goals](https://sdgs.un.org/goals)
- **GRI** -- [Global Reporting Initiative](https://www.globalreporting.org/how-to-use-the-gri-standards/resource-center/)
## Background
Sustainability standards refers to the ESG guidelines outlined by GRI. Organisations report their non-financial impacts according to the [GRI framework](https://www.globalreporting.org/how-to-use-the-gri-standards/gri-standards-english-language/) They could be briefed as follows:
* Environmental - **E**
* building economic growth within environmental degradation limits, i.e., keeping water, soil, air & biodiversity (wildlife) clean
* Social - **S**
* focusing on maintenance and prosperity of the employees and their communities,
* Governance - **G**
* developing ethical standards of administration within the organisation
## Aim
1. **Determine correlation betweeen ESG performance (acc. to GRI?) and Stock performance**
2. **Develop dashboard to view ESG performance at par with Stock performance**
## _Hypothesis_ 🏷️
### **Traditional Growth Model (H0)**
_Value creation & ESG Reporting by Organisations do NOT CORRELATE with GRI standards and sometimes stagnates performance_
### **Modern Growth Model (HA)**
_Value creation & ESG Reporting by Organisations do CORRELATE with GRI standards and leads to resilient performance_
## _Assumption_
1. Organisation's stock performance defines the economic growth of that entity.
2. Organisation's Annual sustainability reports are based on GRI standard framework and are updated.
## **Declaration**
- I understand that there could be several possibilities to show the growth of an Organisation.
- This is my attempt to focus on one aspect of growth identifiers.
- Hence, showing the **correlation between following a global ESG standard framework (GRI) and Long-term value creation**.
# Approach 🏗️
## Sustainability profiling of Companies
* **MODULE 1** - Coalesce top 100 companies list from [dataset](https://github.com/prak112/esg-profile/blob/7b320c46d47dca93c9b0abf453bcc234039b91c7/dataset) 💾
* **MODULE 2** - Collect Annual Sustainability reports of these companies
* **MODULE 3** - Process the reports to identify Key Sustainability Indicators (KSIs)
* **MODULE 4** - Categorize KSIs into industrially acknowledged impacts:
- EnvironmentaL - impact on land, air, water and ecosystems
- Social - impact on employee and their families' lifestyles
- Governance - impact of company policies governing the management of above two impacts
* **MODULE 5** - Build Dashboard to visualize Stock Market performance based on their KSIs
* **MODULE 6** - _IF & Wherever possible_, Identify :
- **Proxy data** provided by services to companies
- **Outsourcing ESG activities**, such as purchasing carbon offsets without improvements in Company's Sustainability