Solactive Unveils Suite of AI-driven ESG Indices

Media Coverage February 13, 2019

Full article available on ETF Strategy
By James Lord

Summary 

German index provider Solactive and San Francisco-based artificial intelligence (AI) company Truvalue Labs have teamed up to launch a suite of environmental, social, and governance (ESG) indices that are driven by AI.

The indices will be constructed from the Solactive Global Benchmark Series which covers around 2,000 equity indices across developed and emerging markets. From this universe, Solactive selects companies with high ‘Insight Scores’, a proprietary ESG rating calculated by Truvalue Labs.

In obtaining the Insight Scores, Truvalue Labs utilizes AI and machine learning to parse unstructured data from more than 100,000 sources.

According to Truvalue Labs, this process results in more of an independent perspective on a firm’s ESG performance rather than relying on company disclosures which may be subject to manipulation.

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Hendrik Bartel, CEO and Co-founder of Truvalue Labs, added, “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. 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.”