New MPI Research: Detecting ESG Misalignment in Funds (Presented at SIIIC 2026 Academic Conference)

Hamburg, Germany | January 23, 2026 — Markov Processes International (MPI) presented new research at the 9th Sustainable and Impact Investments International Conference (SIIIC) 2026 introducing a quantitative, highly scalable methodology—built from reported fund performance data—to flag potential fund-level ESG “misalignment” (ESG label-risk) when disclosures and ESG ratings are noisy, inconsistent, or unavailable.

The research is available on SSRN: “Detecting ESG Misalignment: A Returns-Based Framework for Fund Transparency and Regulatory Oversight” (Olga Krasotkina, Michael Markov, Daniel Li).
SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=6051554

The paper describes a systematic approach for monitoring fund-level ESG label-risk at scale using information embedded in reported performance series. The goal is to support ongoing diligence and monitoring—especially in environments where ESG data sources and disclosures can be incomplete, lagged, or difficult to compare across managers and jurisdictions.

Potential applications include:

• Allocator diligence and monitoring (screening and prioritization of deeper review)
• Product governance and internal oversight workflows
• Transparency and surveillance use cases where systematic monitoring is valuable

The SIIIC presentation also included a real-world case study illustrating how the screen can serve as an early-warning indicator for potential greenwashing risk and help prioritize deeper review.