Jochen L Leidner is a Director of Research at Refinitiv in London, where he heads the R&D team, which he also set up. His background includes a Master’s in computational linguistics, English and computer science (University of Erlangen-Nuremburg), a Master’s in Computer Speech, Text and Internet Technology (University of Cambridge) and a PhD in Informatics (University of Edinburgh). He is author of several dozen peer-reviewed publications, has authored or co-edited two books and holds several patents. He was twice winner of the Thomson Reuters invention of the year award, and first recipient of the ACM SIGIR Doctoral Consortium Award. Since September 2017, he has also been Royal Academy of Engineering Visiting Professor of Data Analytics in the University of Sheffield.
ESG: From Sentiment to Risk in Sustainable Investment
It has long been stated that sentiment is an important element of financial markets. But what exactly is sentiment, and how does it related to risk? In this talk, I will outline uses of sentiment that turn out to be fundamentally different, and contrast it with the more objective notion of risk. I point out some flaws in past work on sentiment and describe how they can be avoided. Finally, I relate sentiment, risk and ESG to each other: recently there has been increased attention in finance to supplement fundamental analysis of companies with non-financial metrics to address the desire to account for Environment, Sustainability and Governance (ESG) factors also known as Corporate Sustainability (CSR) for short). I argue that by exploring sentiment in an fine-grained, aspect-based way, we can derive more valuable insights.