ESG Factor Modeling With Python

Pre-requisites:

• LSEG Workspace application with an access for RD library desktop session, or RDP account for platform session
• Python 3.9 or above
• Python libraries
  • pandas==2.1.4
  • numpy==1.25.0
  • seaborn==0.13.2
  • matplotlib==3.8.0
  • matplotlib-inline==0.1.6
  • refinitiv-data==1.6.0
  • scikit-learn==1.4.2
  • scipy==1.9.3

Conclusion

In conclusion, the integration of Environmental, Social, and Governance (ESG) factors into factor modeling represents a significant advancement in investment analysis. ESG considerations have become increasingly essential for investors seeking to align their portfolios with sustainability values while managing risk effectively.

Reference

• https://www.lseg.com/en/data-analytics/sustainable-finance/esg-investing
• https://www.lseg.com/content/dam/data-analytics/en_us/documents/methodology/lseg-esg-scores-methodology.pdf