Andrew Willis: The “10 for 2023” from Sustainalytics is out and it’s on the very cutting edge this year. While speculative stocks have had a tumultuous 2022, the innovations continue, and ten companies stand out for their work on six high-tech breakthroughs.

In the recent Sustainalytics report, authors Martin Vezér and Poulomi Sengupta used the Pitchbook platform to comb through deals in the emerging technology space and identify ESG trends that play a material role in the equities market.

The first such space is the automated shipping industry, and one of the companies at the helm is Kongsberg (NSKFF). The Norwegian technology conglomerate launched the world’s first fully electric and autonomous container vessel in 2021. With the ability to enhance vehicle safety and reliability, and reduce operating costs, the company’s technologies also improve crew decision–making, especially around energy use.

The innovations with autonomous vehicles have significant ESG implications if we reduce carbon emissions and improve working conditions on ships. As the Sustainalytics report explains, having some artificial intelligence at the helm can help reduce weariness and information overload among the crew, as well as find shorter routes. Increased productivity and efficiency also sound great for the bottom lines of shipping companies – so what’s the catch?

When you increase your reliance on A.I., you also increase your reliance on the tools the computer uses. Sensors can fail and cybersecurity risks can grow, which furthers the need for industry regulations and standards. Tomorrow we’ll discuss another stock at the helm of the self-sailing movement, with its efforts to create a maritime framework for its remote-controlled tugboats.

For Morningstar, I’m Andrew Willis.