Truvalue Labs, the pioneer in AI-driven environmental, social, and governance (ESG) data, along with Solactive, the German index engineering firm, today announced the launch of the Solactive Truvalue ESG Index Series.
These indices are designed to provide investors with diversified exposure to global large- and mid-cap equities with strong ESG characteristics.
As assets in passive ESG funds doubled to $250 billion in the past three years, investors are demanding better quality information. Truvalue Labs sources and analyzes information differently than traditional ESG research firms, using natural language processing and machine learning. Its Insight scores are derived from real-time ESG information that is not dependent on company disclosures. Using the SASB materiality framework, Truvalue’s approach is transforming investors’ expectations about ESG research, offering a timely, transparent and salient stakeholder perspective on sustainability issues.
The Solactive Truvalue ESG United States Index is the first benchmark in the series, which applies Truvalue’s Volume and Insight scores for component selection while avoiding exposure to fossil fuels, utilities and tobacco companies. As of August 26, 2020, index performance from February 2008 shows annualized returns of 12.43% compared with 10.38% for the Solactive GBS United States Large & Mid Cap Index, the parent index.
“Truvalue Labs’ technology-driven approach generates current, consistent and relevant ESG signals. We’ve experienced rapid adoption of our real-time ESG information by leading asset owners and managers,” said Thomas Kuh, Head of Index at Truvalue Labs. “Now, we are very pleased to work with Solactive, the leading independent index provider, to offer investors transparent and cost-efficient exposure to Truvalue’s unique ESG factors through these indices.”
“We actively seek partners with diverse and creative approaches to develop differentiated indices of the highest quality,” said Steffen Scheuble, CEO of Solactive. “We are delighted to partner with Truvalue Labs to bring a new series of ESG indices to market. As a company that applies leading-edge technology, we are very confident that we have found an ally with artificial intelligence as its core competency.”