Overview

Historically, evaluating investments focused solely on financial returns. However, with the growing significance of climate change, the concept of “triple bottom line” or financial, environmental, and social impact has been gaining traction. This push to look at investment decisions more holistically has given rise to ESG (Environmental, Social, and Governance) practices and policy.

ESG measures the societal and sustainability impact of every business activity. Investors are now looking to responsibly invest in companies that manage their impact on the environment and society at large. To serve this need of investors.

ESG rating agencies use analysts to measure the performance of various companies and compare them through ratings and rankings, this does not always show the full picture as the rankings can sometimes be as old as 6-12 months.

ESG Analytics is a platform that uses artificial intelligence and alternative data (data outside of corporate disclosures) to benchmark company ESG performance, this allows for more company coverage, real time insights and the ability to look beyond a score to determine whether a company meets the ESG criteria you are looking for.

We took a look at the Communication Services industry, to understand the best performers. Read on to learn how industry leaders like Take Two, Omnicom, Dish network, Comcast, Discovery Inc demonstrate a well managed company, with low ESG controversy risk.

‍

How were these companies selected?

Each day, ESG Analytics processes millions of documents to identify and manage ESG risk using our proprietary Natural Language Processing (NLP) algorithms. Once we identify a material event, we classify it according to the industry leading SASB framework (26 different ESG topics) and then run sentiment analysis to determine how positive of negative the event is. This chart below shows the ESG Pulse of companies in the Communication Services sector. For accuracy, we excluded companies that did not meet a minimum threshold of events.

Here is the full list :

1.Take-Two Interactive Software, Inc.

Take-Two Interactive Software, Inc. develops, publishes, and markets interactive entertainment solutions for consumers worldwide. The company offers its products under the Rockstar Games and 2K labels, as well as under Private Division and Social Point labels. It develops and publishes action/adventure products under the Grand Theft Auto, Max Payne, Midnight Club, and Red Dead Redemption names through developing sequels; and offers downloadable episodes, content and virtual currency, and releasing titles for smartphones and tablets. The company also develops brands in other genres, including the LA Noire, Bully, and Manhunt franchises.

‍

Take-Two Interactive's ESG Pulse is 0.95 out of 1 over the last year, indicating a well managed public profile, free of ESG controversy.

‍

There is virtually no identifiable controversy risk for the company, and this is echoed by other external providers with a score of 17 from Sustainalytics and a BBB from MSCI.

‍

‍

2. Omnicom

Omnicom Group Inc., together with its subsidiaries, provides advertising, marketing, and corporate communications services. It provides a range of services in the areas of advertising, customer relationship management, public relations, and healthcare. The company's services include advertising, branding, content marketing, corporate social responsibility consulting, crisis communications, custom publishing, data analytics, database management, digital/direct marketing, digital transformation, entertainment marketing, experiential marketing, field marketing, financial/corporate business-to-business advertising, graphic arts/digital imaging, healthcare marketing and communications, and in-store design services.

‍

Omnicom's ESG Pulse is 0.94 out of 1 over the last year, a standout performer using ESG Analytics AI based methodology.

‍

‍

3. DISH Network Corporation

DISH Network Corporation, together with its subsidiaries, provides pay-TV services in the United States. The company operates in two segments, Pay-TV and Wireless. It offers video services under the DISH TV brand; and programming packages that include programming through national broadcast networks, local broadcast networks, and national and regional cable networks, as well as regional and specialty sports channels, premium movie channels, and Latino and international programming packages.

‍

DISH Network has an ESG Pulse of 0.95 out of 1, and is not included in any negative screens.

‍

They have been active in building the first Open RAN 5G Edge Infrastructure in partnership with Dell.

‍

4. Comcast Corporation

Comcast Corporation operates as a media and technology company worldwide. It operates through Cable Communications, Cable Networks, Broadcast Television, Filmed Entertainment, Theme Parks, and Sky segments. The Cable Communications segment offers cable services, including high-speed Internet, video, voice, and security and automation services to residential and business customers under the Xfinity name; and advertising services.

‍

Comcast Corporation has a ESG Pulse of 0.92 out of 1, and has no material ESG controversies of note.

‍

Some initiatives over the last year include:

• Comcast Corporation Announces Largest Ever Expansion of Its Internet Essentials Program to Reach All Low-Income Americans
• Comcast’s Internet Essentials Program Joins Forces with Conference of Western Attorneys General to Promote Internet Safety for Seniors, Parents and Children
  
• Comcast Offers Thousands of Grants, Equipment, Marketing and Technology Resources to Small Businesses Hardest Hit by COVID-19
  

‍

5. Discovery, Inc

Discovery, Inc. operates as a media company in the United States and internationally. The company operates in two segments, U.S. Networks and International Networks. The company owns and operates various television networks under the Discovery Channel, TLC, Animal Planet, Investigation Discovery, Science Channel, MotorTrend, Food Network, HGTV, Travel Channel, TVN, DIY Network, Cooking Channel, Discovery Family Channel, American Heroes Channel, Destination America, Discovery Life, Discovery en Espanol, Discovery Familia, Great American Country, ID, the Oprah Winfrey Network, Eurosport, Discovery Kids, DMAX, and Discovery Home & Health brands, as well as other regional television networks.

‍

Discovery Inc has an ESG Pulse is 0.9 out of 1 over the last year, a standout performer using ESG Analytics AI based methodology.

‍

There is virtually no identifiable controversy risk for the company, and this is echoed by other external providers with a score of 17 from Sustainalytics and a BBB from MSCI.

‍