TY - JOUR T1 - Practical Applications of ESG and Alternative Data: Capturing Corporates’ Sustainability-Related Activities with Job Postings JF - Practical Applications DO - 10.3905/pa.2022.pa524 SP - pa.2022.pa524 AU - Arik Ben Dor AU - Jingling Guan AU - Adam Kelleher AU - Adam Lauretig AU - Ryan Preclaw AU - Xiaming Zeng Y1 - 2022/11/23 UR - https://pm-research.com/content/early/2022/11/20/pa.2022.pa524.abstract N2 - In ESG and Alternative Data: Capturing Corporates’ Sustainability-Related Activities with Job Postings, from the Winter 2022 issue of The Journal of Financial Data Science, Arik Ben Dor, Jingling Guan, Adam Kelleher, Adam Lauretig, Ryan Preclaw, and Xiaming Zeng, all at Barclays, find that ESG job posting data can serve as a leading indicator of future changes in firms’ ESG ratings. Firms with higher posting intensity were more likely to experience subsequent ESG rating improvements and they enjoyed better stock performance in the two to three years following the posting date. The authors also find statistically significant alphas in multifactor models for a particular type of long–short strategy based on ESG hiring interests. Using fuzzy matching and other natural language processing techniques to match job posting data with S&P 400 and S&P 500 companies, the authors determine the extent of ESG hiring interests among these companies. ER -