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New series of AI-driven ESG indices launched
Real-time benchmarks offer diversified exposure to equities with strong sustainability values
10 Sep 2020 | The Asset

Truvalue Labs, a San Francisco-based provider of environmental, social and governance (ESG) data using artificial intelligence, has collaborated with German index engineering firm Solactive to launch a new generation of AI-driven ESG indices. The SolactiveTruvalue ESG Index Series is designed to provide investors with diversified exposure to global large- and mid-cap equities with strong ESG characteristics.

The SolactiveTruvalue ESG United States Index is the first benchmark in the series, which applies Truvalue’s scores for component selection while avoiding exposure to fossil fuels, utilities and tobacco companies. As of August 26, 2020, index performance from February 2008 shows annualized returns of 12.43% compared with 10.38% for the Solactive GBS United States Large & Mid Cap Index, the parent index.

As assets in passive ESG funds doubled to US$250 billion in the past three years, investors are demanding better quality information. “Truvalue Labs’ technology-driven approach generates current, consistent and relevant ESG signals. We’ve experienced rapid adoption of our real-time ESG information by leading asset owners and managers,” says Thomas Kuh, head of index at Truvalue Labs. “We are very pleased to work with Solactive, the leading independent index provider, to offer investors transparent and cost-efficient exposure to Truvalue’s unique ESG factors through these indices.”

Solactive chief executive officer Steffen Scheuble notes: “As a company that applies leading-edge technology, we are very confident that we have found an ally with artificial intelligence as its core competency.” 

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