Truvalue Labs partners with Solactive to create AI-Powered ESG Indices; hires industry veteran Thomas Kuh.
Solactive, the German index engineering firm, will collaborate with San Francisco-based AI company Truvalue Labs, intensifying efforts to meet a significant increase in client demand for ESG indices.
“We are looking for innovative ways to uncover insights from ESG data”, says Steffen Scheuble, CEO of Solactive. “Quality and timeliness in ESG data are high priorities for investors. As a company that puts substantial research into Machine Learning and Natural Language Processing, we are very confident that we have found an ally in Truvalue Labs, which also has Artificial Intelligence as its core competency.”
Truvalue Labs sources and analyzes information differently than other ESG data firms through its use of artificial intelligence and machine learning. The firm parses unstructured data from more than 100,000 sources compiling an independent perspective on company ESG performance instead of relying on company disclosures.
Hendrik Bartel, CEO and Co-founder of Truvalue Labs, states: “As more investors increasingly integrate ESG into their investment processes, it is our mission to provide signals that are timely and sourced from transparent data,” says Bartel. “With Solactive, we are pleased to find a partner that shares our values and vision with respect to AI and ESG. We look forward to working closely to bring new innovative indices to market.“
The first series of indices under development utilize Solactive’s Global Benchmark Series as the starting universe. From this universe, Solactive selects companies with high data volume and high “Insight Scores”, Truvalue Labs’ proprietary ESG rating. Backtests of the strategy have shown outperformance in different markets. The index design allows clients to individually form regional or domestic index combinations, providing full flexibility in the creation of custom equity strategies in index format.
Truvalue Labs is the first company to apply artificial intelligence (AI) to uncover timely and material Environmental, Social, and Governance (ESG) information at scale. The company’s mission is to deliver increased transparency to investment professionals by providing data and analytics that go beyond traditional fundamentals. It is backed by investors including Series A round lead Katalyst Ventures, based in San Francisco. The flagship products, Truvalue Platform, Truvalue Data and Truvalue Cloud, deliver investable insights by revealing value and risk factors from unstructured data at the speed of current events. Visit www.truvaluelabs.com to learn more about the SaaS, API, Cloud and Index products.
Solactive AG is an innovative index provider that focuses on the development, calculation and distribution of tailor-made indices across all asset classes. As at January 2019, Solactive AG served approximately 400 clients in Europe, America and Asia, with approximately USD 200 billion invested in products linked to indices calculated by the company globally, primarily via 380 exchange-traded funds from a number of well-known providers. Solactive AG was established in 2007 and is headquartered in Frankfurt.