Machine Intelligence is a branch off of Artificial Intelligence. Although the lines often cross or become blurred, Artificial Intelligence can be thought of as an umbrella term that encompasses any input being asked of a machine and in return that machine generates an output that we would consider correct and aligned with the original request. Machine Intelligence is allowing a machines’ algorithms to take information and makes sense of it or learn by itself. Without asking for a certain output, Machine Intelligence can start seeing correlations and patterns previously hidden in the data. These patterns, predictions, correlation or self-taught skills are not originally coded for the machine to find, generate or learn. Consider the importance of applying Machine Intelligence to a Big Data problem or an extremely large dataset. There is a lot for the machine to learn. The amount of ESG information that is becoming available today has become overwhelming. Companies in the past did not feel obligated or find it necessary for them to report on ESG topics. New standards and pressures have pushed companies in this decade to be more clear with their practices and approaches to running day-to-day operations. Due to cultural shift, companies have been pushed to report more ESG information than in previous decades. As reported by Oppenheimerfunds, 20% of S 500 companies published sustainability reports in 2011. That percentage of S 500 companies drastically increased to 81% by 2015. This is just one area where larger pools of data can be extracted for analysis. There are also third-party sources that continue to grow every day varying from news stories, company websites to blogs and social media. Esoteric sources like these are where large portions of information are being dumped, giving way to indicators on how a company operates. The increased amount of information has allowed Harmony to push past the old ESG narratives of the past. Narrative such as, there is not enough ESG information available, collecting and picking material outcomes for companies based on human judgement is too complex, there is no standardization, or that ESG does not provide a positive outcome. The team at Harmony is focused on eliminating these narratives and spotlighting the solutions. Harmony Analytics has been able to assemble a comprehensive standard to measure over 100 ESG issues that can be correlated to a material outcome. Through our advanced algorithms that can analyze this complex problem of having different standards and measurements reported by companies all over the world, we can determine how this affects these companies. Harmony can answer questions with more precision and speed, while human analysis alone cannot. Understanding how to construct algorithms that can read and analyze inconsistent company ESG reports and categorize what is material for each company, allows us to establish a standard. This process significantly reduces the time and bias that is currently built into human analyst reports on these companies. Harmony Analytics Intelligence produces profiles on companies that are far more consistent than those of the past. Beyond those factors, the Machine Intelligence, currently constructed, can be scaled to read through more reports than any army of individuals could ever read. Having a consistent way to analyze ESG issues allows for capital owners to understand their assets with more clarity. The reason clarity is helpful and a must-have is because ESG clarity provides capital owners the ability to not break their fiduciary obligations. The hundreds of ESG studies have shown when ESG issues are taken into account there are unexpected results. Not only is the amount of financial risk reduced, but also the risk in each company such as reputational risk, political risk and regulatory risk are exposed. These are all factors that influence the volatility of a stock. Taking ESG issues into account also creates opportunities for positive financial effects that can lead to positive financial performance. ESG is beyond a buzzword or a megatrend at this point and will continue to transform the financial landscape. It is up to capital owners to make the decision who they get their information from and that is why we created the standard to measure ESG issues. The power of this technology is revolutionizing the way ESG data can be collected, analyzed, standardized and used to inform companies’ risks and opportunities.