Big Data: helpful in the event of a crisis, or total surveillance?
The magic word currently is Big Data; it describes technologies used for analysing large volumes of data. Thanks to mass data some companies sometimes know more about their users than their partners or close friends. “Knowing that someone has a dog and sending them dog food adverts is not necessarily objectionable,” says Osojnik. “But only few people are aware of the consequences of the ongoing development of digital data. The erroneous data interpretation by authorities – for example in combination with someone’s political stance or their origin – could be enough for a travel ban, in a worst-case scenario.”
Of course, Big Data does not only have downsides. The use of mass data can serve society as well. In Cape Town, citizens can track their water consumption and the required savings in their neighbourhood online. This has helped defuse the water crisis that area has been going on for years.
Resources for example in the industrial sector or in agriculture can be utilised much more efficiently on the basis of certain algorithms. “If, however, data are not publicly accessible, the market concentration rises, smaller competitors are ousted, and the barriers to entry are heightened for competitors,” as Osojnik points out.
There is a lack of best-practice solutions in how to handle the collected data. “As sustainable investor, we advocate a clearly outlined responsibility when it comes to a more conscientious handling of personal data.”
The sustainable RESPONSIBLE funds of Erste Asset Management are subject to strict rules regarding the environmental policies, corporate governance and general corporate social responsibility of the companies in which they invest.
Our new ESG-Newsletter focuses on data protection and big data across all its complexity: