Frankfurt-based index engineering firm Solactive and Truvalue Labs have joined forces to create a series of ESG Indices designed to provide investors with diversified exposure to global large- and mid-cap equities with strong ESG characteristics.
Truvalue is headquartered in San Francisco. Its artificial intelligence algorithm parses big data from more than 115,000 sources and produces ESG metrics in real-time, which also means the fintech is able to bypass conventional company disclosures for an independent perspective on a company’s ESG performance.
Thomas Kuh, head of Index at Truvalue Labs, said in a statement: “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.”
The composition of the first index deployed by Solactive and Truvalue Labs is the Solactive Truvalue ESG United States Index. It builds on the Solactive GBS United States Large & Mid Cap USD Index, which covers a broad universe of more than 500 US large and mid-cap stocks. In the first stage, companies classified in controversial industries such as Oil and Gas production, Coal mining, or Tobacco are excluded from the index. The exclusions are based on classifications from the Sustainable Accounting Standards Board.