As Environmental, Social and Governance investing becomes commonplace in the financial world, doubts on its ability to generate alpha rise along with the importance of investing in companies that are behaving sustainably. At Orenda, we know good companies do well. This is our first white paper that proves it. For this research, we captured social media data on every constituent of the S&P500 for more than three years. We then created a model that is common and easy to use, making sure our results can be replicated by others. What can’t be recreated is our data, which is unique. Our technology bypasses typical surveys and often overly prescribed criteria that is voluntarily disclosed by companies and widely distributed. Instead, our technology validates a company’s true progress by extracting the ESG activities that consumers and citizens share about the company on social media. This, in our opinion, is the best way to determine if a company aligns its values with society’s values and the only way to capture this valuable data in real time. The difference is staggering, as readers will learn in this white paper. Not only does this method give a timely signal to the market, it keeps pace with societal changes from global events and social activism, sending waves of relevant data that is immediately useful for socially conscious investors.
A special thank you goes to the entire Orenda team. Each of us had an important role in getting the data, scoring each of the 500,000,000 social media posts and creating 2.2 billion data points, storing it carefully and making it accessible, creating the models, validating the results and sharing our work with the world by authoring a well written and extremely thoughtful research document.
I admire your efforts and continued commitment to our goal, which is to prove that companies that do good, do well. WHICH WE DID!
-Tanya Seajay, Founder and CEO of Orenda Software Solutions
Download the full Whitepaper: SOCIAL POSITIONING WITHIN THE S&P 500