Industry Updates

Solactive set to expand ESG index offering

George Geddes

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German index provider Solactive is collaborating with Artificial Intelligence company Truvalue Labs to expand its Environmental, Social and Governance (ESG) index offering. The partnership is to meet the significantly increasing demand from its clients, according to the provider.

The index provider partnered with ISS for an ESG index series launch at the beginning of the month.

San Francisco-based Truvalue labs uses artificial intelligence and machine learning technology to source and analyse information. Said information is sourced from over 100,000 points, providing an independent perspective on a company's ESG performance instead of relying on company disclosures.

Still under development, the first series the pair will launch will utilise Solactive's Global Benchmark series as the initial population. Solactive will then incorporate Truvalue Labs' ESG rating methodology to calculate "insight scores" to rank and score the population.

The design of the index enables Solactive's clients to form either regional or domestic index combination and provides creation of custom equity strategies in index format, according to the provider.

Hendrik Bartel, CEO and Co-founder of Truvalue Labs, said in a statement: "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."


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