San Francisco-based data and risk analytics company, TruValue Labs has launched what they claim to be the first ESG indicator that leverages artificial intelligence, big data and the Sustainability Accounting Standards Board (SASB) materiality framework. ESG Momentum reveals the direction, or trend, of ESG performance based on daily data.
This score is part of TruValue Labs' Insight360 suite of ESG metrics that incudes TruValue Labs' ESG2.0, which aims to leverage AI technology to analyze unstructured data and creates ESG performance scores based on non-company disclosed data.
In addition to an ESG Momentum Score and a timely Pulse Score, which charts ESG activity as events happen, the Insight360 platform includes a longer-term measure of ESG performance called the Insight Score, which is suitable for portfolio and index construction.
All three scores enable a range of investment strategies, leveraging artificial intelligence to analyze the massive volume of publicly available data on companies. Unlike annually produced ESG ratings, TruValue Labs' scores incorporate events as they occur.
"When it comes to ESG, investment professionals need more than ratings based on annual, company self-reported information—they require timely data from an external, objective perspective that we call 'ESG2.0,'" said Hendrik Bartel, chief executive and co-founder of TruValue Labs. "This next-gen ESG data incorporates events around the clock, with scores that demonstrate how company performance is changing over time."