Firms Use Artificial Intelligence for ESG Index

Media Coverage February 18, 2019

Full article available on Expert Investor
By Joe McGrath

Machine learning and artificial intelligence will play a part in the new indices from Germany’s Solactive and Truvalue Labs.

Summary 

German sustainable index constructor Solactive has announced a partnership with American data research group Truvalue Labs.

Working in collaboration, the two companies are planning to create a new range of environmental, social, and governance (ESG) indices that use machine learning and artificial intelligence (AI) to score companies in their ESG credentials.

Truvalue Labs looks at unstructured data sets from more than 100,000 sources to create an independent view on corporate ESG performance instead of using corporate disclosures as the foundation.

Hendrik Bartel, chief executive officer and cofounder of Truvalue Labs, said the company will provide “timely” signals that are sourced from transparent data.

He explained: “With Solactive, we are pleased to find a partner that shares our values and vision with respect to AI and ESG.”