FactSet Acquiring ESG AI Analytics Provider Truvalue Labs
Financial information and analytics provider FactSet announced today that it has entered into an agreement to acquire artificial intelligence (AI) and data mining company Truvalue Labs. FactSet stated that the integration of Truvalue Labs is aimed at expanding investors’ access to meaningful ESG signals.
Truvalue Labs enhances the research capabilities of investment firms by leveraging artificial intelligence to rapidly analyze and interpret massive amounts of unstructured data. The firm has been primarily focused on analytics for ESG investing. Last month, Truvalue Labs announced an agreement with Citi to accelerate the financial services giant to deliver high-quality ESG research at scale.
Phil Snow, CEO, FactSet, said:
“Truvalue Labs provides detailed and actionable ESG scores backed by a credible body of academics. ESG funds have seen record inflows this year and client demand for valuable, up-to-date ESG signals is high. Combining Truvalue Lab’s offering with FactSet’s content and technology suite will add value across our businesses. We believe this acquisition will yield compelling results for both firms and our joint client bases.”
Consolidation in the ESG data and analytics space has been heating up, as demand for ESG investing grows, and investors increasingly integrate sustainability factors into their investment processes. Last week, UK-based property market information provider Landmark Information acquired ESG due diligence platform Risk Horizon, earlier this month, Refinitiv noted a growing focus on ESG due diligence as a motivating factor behind the acquisition of The Red Flag Group, and Morningstar recently completed the acquisition of ESG data and analytics provider Sustainalytics.
San Francisco-based Truvalue Labs was founded in 2013. The company applies AI-driven technology to over 100,000 unstructured text sources in 13 languages, including news, trade journals, and nongovernmental organizations and industry reports, to provide daily signals that identify positive and negative ESG behavior. Its coverage spans over 19,000 public and private companies and generates short-term, long-term, and momentum scores derived from hundreds of signals. These signals are mapped against the Sustainability Accounting Standards Board (SASB) standards and United Nations Sustainable Development Goals (SDGs), allowing investors to evaluate ESG risk factors and real-world actions and impacts for quantitative analysis and back-testing. The company also works with its well-established Academic Research Network, which helps academic researchers use its data to study ESG trends and market-related behavior.
Hendrik Bartel, CEO and Co-Founder, Truvalue Labs, said:
“We are extremely excited to be joining the FactSet team. The client base, distribution, content and technology platform, as well as a strong culture fit will help us expand our reach and amplify the actionable ESG insights we can provide the investment community. FactSet’s commitment to helping clients leverage ESG content that matters matches our own.”