In Part 2, I apply a Hidden Markov Model to several large ESG funds to examine how they perform relative to the S&P 500 index fund—and whether they consistently outperform it in volatile markets, as suggested by some researchers and practitioners. Continue reading Applying Hidden Markov Models to Sustainable Finance: Part 2-ESG Fund Performance Across Market Regimes

Inverse Reinforcement Learning (IRL) is a method in artificial intelligence that focuses on learning from observing behavior. IRL tries to infer the underlying goals or motivations of an expert simply by studying what they do. This is different from traditional reinforcement learning, where Continue reading Introducing an AI Technique: Inverse Reinforcement Learning with AAII Investor Survey Data

Despite the growing frequency and severity of urban heat waves, many of the most promising strategies for mitigating the urban heat island (UHI) effect—localized warming in cities caused by heat-absorbing surfaces and a lack of vegetation—remain largely confined to academic journals, policy briefs, and simulation models. Continue reading From Models to Nowhere: Why Urban Heat Island Solutions Remain Stuck in Academia

As AI increasingly delivers instant answers and seamless solutions, many have begun to question whether learning fundamental theories and concepts still holds value. This article is a philosophical exploration of why, even in an age of intelligent machines, the pursuit of deep, conceptual understanding remains essential to human thought, judgment, and growth. Continue reading Beyond the Quick Fix: Why Fundamental Theories Still Matter in an AI Era

A Hidden Markov Model (HMM) is a statistical model widely used in scenarios where the observed data are generated by an underlying, unobserved (hidden) sequence of states that follow a Markov process. It’s extensively applied in fields like finance, biology, speech recognition, and economics. Continue reading Applying Hidden Markov Models to Sustainable Finance: Part 1 – A Simplified Stock Market Example with Python

In this article, we apply a machine learning technique—symbolic regression—to examine the relative performance of the Russell 2000 compared to the S&P 500. Our objective is to gain deeper insights into their comparative dynamics and identify potential predictive patterns. Continue reading Interpretable Machine Learning in Finance: A Case Study Using Symbolic Regression (1)

According to the Global Impact Investing Network (GIIN), global impact investments reached over $1.571 trillion in assets under management in 2024, with high-profile sectors such as renewable energy, healthcare, affordable housing, and education drawing the lion’s share of attention. Yet, beyond these well-trodden paths lies the arts and culture sector—a less visible but intriguing area for exploration. Continue reading Impact Investing in the Arts: Trends, Critiques, and Evaluation Methods

Scalability in the bioeconomy involves a variety of context-specific considerations that can differ widely based on the technology or product. Academic studies offer valuable examples that illustrate how scalability is assessed across diverse bioeconomy sectors, shedding light on the methods used to evaluate scale-up potential. Continue reading Scalability as a Key Consideration in Bioeconomy Financing: Part 2

Assessing scalability is vital for evaluating a project’s growth potential and likelihood of success. It measures how efficiently a business model or technology can expand without compromising quality or performance. In finance, scalability analysis helps investors determine Continue reading Scalability as a Key Consideration in Bioeconomy Financing: Part 1 (with Infographics)

Local Interpretable Model-Agnostic Explanations (LIME) is another technique commonly used in financial studies to improve the explainability of AI-based decision-making. LIME works by approximating the predictions of black-box AI models with simpler Continue reading Explainable AI through the Lens of Finance: Part 2

Natural capital conservation and restoration projects often do not align with the typical financial valuation models used in investment analysis by private investors. There is a need for a framework that translates ecological concepts into terms understandable within conventional financial contexts. Continue reading Connecting Natural Capital Conservation and Restoration with Financial Markets: The Role of Return on Investment (ROI)

This article delves into the major critiques of causality in philosophy, exploring the complex issues that arise when examining the foundations of cause and effect, as well as the practical challenges of establishing causality in machine learning and data analytics. Continue reading Critiquing Causality: Philosophical Foundations and Technical Challenges in Machine Learning and Analytics

AI has significant implications for fiduciaries in business and finance. Both neglecting to utilize AI and blindly deferring to AI decisions can constitute breaches of the duty of due care. For investment advisors, it is crucial to assess the risks associated with AI, such as AI-driven market manipulations and the amplification of systemic risk. In the age of AI, continuous learning is essential for fiduciaries to stay informed and effectively fulfill their responsibilities. Continue reading Fiduciary Duties in the Age of AI: Broad Business Implications and Financial Sector Specifics

Understanding the multi-faceted nature of seafood sustainability is crucial for responsible production and consumption. This involves recognizing the importance of sustainable fishing practices that prevent overfishing, the need for aquaculture methods that minimize environmental impact, and the preservation of marine habitats to maintain biodiversity. Additionally, it requires attention to social and economic factors, ensuring fair labor practices and supporting local communities. Continue reading Understanding Sustainable Seafood: Essential Perspectives

As the importance of Nature-Based Solutions (NBS) continues to increase, efforts to design effective assessment indicators have correspondingly grown. This is crucial for securing financing for such projects. Both pre-and post-implementation assessments of NBS necessitate the use of scientifically robust indicators. Continue reading From Concept to Capital: Challenges, Potentials, and Metrics in Financing Nature-Based Solutions: Part 3

The timeline of the EU’s regulatory changes regarding ESG investing and sustainable finance encompasses several pivotal developments aimed at bolstering transparency, combating greenwashing, and promoting sustainable investment practices. Continue reading Visualizing the Evolution of the EU’s ESG Investing Regulations: An Infographic Timeline

In the era of AI, corporate social responsibility (CSR) has become increasingly complex. Whether companies are involved in developing AI technologies or utilizing AI applications, CSR efforts must now encompass a range of issues related to AI, including its impact on human autonomy. Continue reading The Intersection of AI, Autonomy, and CSR: A Philosophical Inquiry: Part 2

Human autonomy refers to the capacity of individuals to make self-directed decisions and take actions that reflect their own values, preferences, and goals, free from undue external influence or coercion. Continue reading The Intersection of AI, Autonomy, and CSR: A Philosophical Inquiry: Part 1

In the ever-growing recognition of the pivotal role that Nature-Based Solutions (NBS) can play in addressing environmental challenges, there has been a notable surge in the private sector’s engagement in financing Nature-Based Solutions. Continue reading From Concept to Capital: Challenges, Potentials, and Metrics in Financing Nature-Based Solutions: Part 2

The development of sustainable textiles and dyes has become a prominent research topic in several scientific fields, among which biotechnology stands out for its potential to mitigate the environmental impacts of the fashion industry. Continue reading Sustainable Fashion: Part 2—Biotechnology Innovations

Life Cycle Assessment (LCA) is a globally recognized method used to quantify the environmental impact of a product, technology, or management process Continue reading Sustainable Fashion: Part 1—An Introduction to Life Cycle Assessment

As the concept of the circular economy has evolved and been implemented, numerous circular economy indicators have emerged—likely more than most individuals can easily process or comprehend. Hence, the need for classifying frameworks becomes crucial to help people identify the most relevant indicators. Continue reading Navigating Circular Economy Financing: Opportunities, Hurdles, and Assessment Approaches: Part 3

Discover the interconnectedness of economic systems and ecological sustainability through visually rich and interactive content designed to captivate learners and inspire a holistic perspective on the crucial issues at the nexus of economics and the environment. Continue reading Exploring Ecological Economics and Finance: Interactive Images for Engaged Learning (2)

Across various sectors, AI systems are confronted with the intricate task of understanding and replicating human empathy. However, the central challenge lies in ensuring that these responses are genuinely empathetic rather than mere pre-programmed scripts. Continue reading AI and Empathy—From Healthcare to Business: Part 1

In the rapidly evolving landscape of artificial intelligence (AI), the imperative to establish robust accountability mechanisms has never been more crucial. Continue reading Establishing Accountability in AI: Navigating Challenges, Solutions, and Implications for Business and Finance

Economic Environmental Valuation (EEV) is a framework that assigns monetary value to environmental goods or services that are not typically traded Continue reading Ecosystem Resilience and Sustainable Resource Management: Part 2 – Measuring Resilience and Integrating it into Economic Environmental Valuation

Green bonds are fixed-income instruments whose proceeds are committed to financing projects that mitigate climate change, facilitate climate adaptation, or promote other environmental sustainability purposes Continue reading The Promise of Green Bonds: Are They Delivering?

Corporate social responsibility (CSR) is a form of corporate self-regulation that represents the collective efforts of the private sector to promote environmentally, ethically, and socially responsible practices Continue reading How to Make Effective Corporate Social Responsibility (CSR) Communication?

The success of a sustainable product strategy depends on consumers’ acceptance of the product and their willingness to pay for it. Sustainable products are usually priced higher than Continue reading Determinants of Consumers’ Willingness to Pay More for Sustainable Products

This is a fun HTML quiz game that aims to educate readers about the fundamentals of corporate sustainability reporting. Continue reading A Game to Learn About Sustainability Reporting: Part 1

Private investment in renewable energy is affected by many factors, including government policies, regulatory frameworks, market conditions, technological developments, and investor attitudes Continue reading Determinants of Private Investment in Renewable Energy