SAN FRANCISCO, Aug. 8, 2017 /PRNewswire/ -- TruValue Labs today announced the ESG Momentum score, the first ESG indicator that leverages artificial intelligence, big data and the Sustainability Accounting Standards Board (SASB™) materiality framework. The score reveals the direction, or trend, of ESG performance based on daily data. ESG Momentum was built to serve investment professionals who know that today's company valuations depend on performance in the areas of environment, social, and corporate governance (ESG).
ESG2.0 means moving beyond company self-reported data
Today much of ESG data is derived from company-provided materials – taking an inside-out perspective on ESG, focused on what companies disclose. TruValue Labs takes an outside-in perspective – capturing the widest variety of perspectives available on companies' ESG performance.
Unique within the industry, TruValue Labs' ESG2.0
- Leverages AI technology to analyze unstructured data
- Creates ESG performance scores based on non-company disclosed data
- Updates on a continuous basis
Why ESG Momentum™ matters for the investment industry
Research studies show a correlation between ESG momentum and investment performance. Furthermore, the studies found that improvements in sustainability are often a better indicator of future success than a company's current ESG scorei,ii.
TruValue Labs' Insight360™ suite of products now includes an ESG Momentum Score™, which quantifies the positive or negative ESG momentum of a company.
In addition to an ESG Momentum Score and a timely Pulse Score™, which charts ESG activity as events happen, the Insight360 platform includes a longer-term measure of ESG performance called the Insight Score™, which is suitable for portfolio and index construction.
All three scores enable a range of investment strategies, leveraging artificial intelligence to analyze the massive volume of publicly available data on companies. Unlike annually produced ESG ratings, TruValue Labs' scores incorporate events as they occur.
"When it comes to ESG, investment professionals need more than ratings based on annual, company self-reported information—they require timely data from an external, objective perspective that we call 'ESG2.0,'" said Hendrik Bartel, CEO and co-founder of TruValue Labs. "This next-gen ESG data incorporates events around the clock, with scores that demonstrate how company performance is changing over time."
"TruValue Labs' new Insight and Momentum scores, built using the SASB materiality framework, will further the mission of improving the availability and transparency of ESG data and support decision making for a broad spectrum of investment strategies," said Mark McDivitt, head of ESG Solutions at State Street Global Exchange.
About TruValue Labs™
TruValue Labs is the first company to apply artificial intelligence (AI) to uncover timely Environmental, Social, and Governance (ESG) data on a variety of asset classes. The company's mission is to deliver increased transparency to investment professionals by providing data and analytics that go beyond traditional fundamentals. The flagship product, Insight360™, delivers timely and investable insights by revealing intangible value and risk factors from unstructured data. Visit www.insight360.io to learn more about the SaaS and API products.
iNN Investment Partners. (2016.) The materiality of ESG factors for equity investment decisions: academic evidence. Available on request from NNIP
iiThornburg Investment Management. (2016.) ESG Momentum Stocks: Sustainable Investing's Diamonds in the Rough. Retrieved from https://www.thornburg.com/pdf/TH3716_ESGMomentum_BW.pdf
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SOURCE TruValue Labs