New Product Launch
REACH
30 October 2023
Insig AI plc
("Insig AI" or the "Company")
New Product Launch
Insig AI, the data science and machine learning company is pleased to announce the launch of The Transparency and Disclosure Index ("TDI"). Using evidence based analysis of more than 200 million machine readable sentences from corporate disclosure documents, the TDI demonstrates what stakeholders and market participants require: how well a company is disclosing non-financial information and how transparent it is. Scoring highlights gaps that are actionable for each company to remedy.
The TDI has been developed following discussions with FTSE 100 and FTSE 250 companies at CEO, CFO and Head of Investor Relations level. It also reflects feedback from our data collaboration with the FCA's Techsprint, where the FCA refers to Insig AI as a key contributor.
The TDI is a response to the plethora of non-financial information that has now overwhelmed corporate reporting. Since 2015, the number of corporate reports produced by FTSE 100 constituents has mushroomed by 626% from an average of 2.5 reports per company to 17.5. In 2022, BT Group produced 47 separate reports and Tesco published 46 reports. It would take an analyst 18 months to collect and read the disclosures from the FTSE 100 constituents.
Machine learning and AI is able to digest this array of detail and distil down to what corporate reporting is supposed to be about: informing the reader, thereby allowing better decision making and actions.
The TDI framework is based on best practice principles behind the convergence of reporting standards. Reports are compared to best practice, benchmarking against peer groups, measuring website clarity and accessibility of documents. It highlights where the range of sustainability documents is considered excessive and flags where companies may be over-using certain keywords identified as being commonly used in greenwashing without evidence and are possibly misleading.
The TDI's objective is to simplify corporate reporting to what matters: easy access and direct sight of the core issues of corporate disclosure. The TDI gives corporates the evidence to limit disclosure to what is important and examples of best practice.
The TDI focuses on the standard of corporate disclosure and transparency, not a company's ESG credentials. Within the FTSE 100, the highest ranking 20 companies include Royal Dutch Shell, International Consolidates Airlines, Rio Tinto, Anglo American, BAE Systems and BAT Industries. Lloyds Banking Group and Rightmove are amongst the lowest scoring constituents.
Richard Bernstein, Executive Chairman of Insig AI commented: "The vast majority of corporates want to do the right thing. However, because there remains no definitive standard for what is required, corporates are overloading information and defeating the object of providing clarity to stakeholders.
Streamlining disclosure and making information easily available is urgently required. The TDI provides objective, constructive and actionable information for companies to do just that."
A demo of the Transparency and Disclosure Index can be accessed here: https://tdi-demo.insg.ai/
For further information, please visit www.insg.ai or contact:
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Insig AI plc Colm McVeigh (CEO) Steve Cracknell (Chief Product Officer) |
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