Truvalue Labs, the pioneer in AI-driven environmental, social, and governance (ESG) data, today announced a partnership with Solactive, the German index engineering firm, to launch ESG index products under the direction of industry veteran Thomas Kuh, who joins Truvalue Labs as its Head of Index.
Truvalue Index was formed to develop indices that provide exposure to its unique ESG factors. The strong momentum behind ESG and the continued growth of passive investing has created a favorable environment for Truvalue Labs to embed its ESG factors into benchmarks for institutional, wealth and retail investors. The joint partnership with Solactive will bring an inaugural set of indices to market to meet this demand.
The rapid adoption of Truvalue’s data products by large asset owners and asset managers convinced us that we should make it accessible to investors in the form of passive strategies,” said Hendrik Bartel, Co-founder and CEO of Truvalue Labs. “We are very pleased to bring Thomas – one of the leading experts on ESG indices – on board to head this effort.”
Truvalue sources and analyzes information differently than other ESG research 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.
As ESG becomes increasingly mainstream, investors are seeking greater insights into ESG risks and opportunities. The Truvalue Index team plans to construct broad market, alpha, and thematic benchmarks to meet this growing demand.
“I’m thrilled to join Truvalue Labs, and excited to construct indices to better serve investors who want to align investment and ESG objectives,” said Thomas Kuh, Head of Index for Truvalue Labs, who previously served as Executive Director of ESG Indexes at MSCI and Head of Indexes at KLD. “We’ll work with investors to provide transparent and cost-efficient exposure to our unique ESG factors.”
“We actively seek partners with diverse and creative approaches to developing 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 in Truvalue Labs, a firm with artificial intelligence as its core competency.”
About Truvalue Labs™
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.
Read the original press release here.