COVID-19: Datamaran redeploys AI engine to spot corporate activities and regulatory change
New York, USA
31 March 2020
Contact: Adriana Farenga
Datamaran – the only digital solution for external risk management – releases an update on EU and US companies’ disclosure on the COVID-19 outbreak. This is part of a monitoring application that uses AI technology to capture decision-useful insights from corporate filings, regulatory developments and news media worldwide.
NEW YORK – Just three months after the novel coronavirus outbreak began, many companies are responding quickly and transparently to crisis in their formal disclosures. Based on a Datamaran analysis of data available so far in 2020, 41% of American companies and 37% of European ones have immediately acknowledged the novel coronavirus in their financial reporting - signalling the immediate understanding of the topic being material to business.
The analysis looks at 1400 companies based in Europe and the US from all sectors and industries assessing the impact of COVID-19 as reported in corporate filings.
The chart shows historical trends for disclosure around previous coronavirus strains (for example, Middle East Respiratory Syndrome - MERS), showing little attention by corporates compared to COVID-19. As the outbreak of the current pandemic coincided with the usual deadlines for filing annual reports in March 2020, many companies responded quickly and transparently by including COVID-19 in their disclosures.
In part, this can be explained as a response to recent guidance issued by authorities and regulatory bodies in both the EU and US. For instance, the U.S. Securities and Exchange Commission (SEC) and the European Securities and Markets Authority (ESMA), have issued guidance laying out how firms are expected to work towards including COVID-19 related disclosure in their 2020 financial filings.While companies responded quickly across the board, the insights captured via Datamaran AI show that various industries are responding differently.
This chart demonstrates that for sectors Technology Equipment and Services (a 30% difference) and Pharmaceuticals (a 11% difference), US companies are more quickly to respond. However, for other industries, like Oil & Gas (a 23% difference) and Financial Services (a 16% difference), European companies take the lead. So far, no European utility company has released any coronavirus-related information in their reports.
As institutions and market participants face growing operational and compliance challenges in formulating a proper response to the coronavirus crisis, Datamaran will continue to track the evolving situation by collecting timely and consistent data.
In addition, Datamaran has launched a public service to track corporate initiatives in response to the COVID-19 crisis. This project, which leverages in particular Datamaran’s online news capabilities, aims to promote best practice sharing and highlight the positive role of business in the fight against the pandemic.
Datamaran’s CEO and Co-founder Marjella Lecourt-Alma notes that,“when talking to our clients, we noticed quickly that everyone is trying to figure out what actions to take in relation to COVID-19 - with many other projects on hold in this uncertainty. The only right thing to do was to figure out quickly how we could redeploy our AI capabilities to shed light on COVID-19 and provide some actionable insights.”
Evan Harvey, Global Head of Sustainability at Nasdaq, comments: “Depth of data is now more important than ever. While a company’s willingness to connect the coronavirus with ESG might depend on how they view ESG as a whole, the way companies balance their ESG commitments with this hugely disruptive environment will be a strong indication of their authenticity. From our side, we are accelerating Nasdaq's focus on sustainability, to understand how to make companies more resilient against emerging ESG issues. I believe all of us will emerge from this crisis with a better understanding of the “S” metrics that really matter and the need for data-driven approaches, like Datamaran, to measure them more consistently.”
For further details, please contact Adriana Farenga at firstname.lastname@example.org.
The above charts were part of the first Monitoring Update released as a part of an ongoing client-exclusive monitoring tool designed to help Datamaran clients. Datamaran commits to making summary-versions available to the public on their website.
Datamaran is the leading digital solutions for external risk management. It harnesses AI technology to support decision-makers with a dynamic materiality analysis process – one that seamlessly integrates into Enterprise Risk Management and corporate strategy.
Datamaran’s global clientele of blue-chip companies have replaced the dated and expensive manual processes once used for these business processes - and, in turn, have gained operational efficiencies and a defensible approach.
The insights Datamaran provides enable the integration of multiple business functions. In doing so, Datamaran’s AI-driven software allows forward-thinking business leaders to stay on top of the changing risk landscape.