FactSet a provider of integrated financial information, and analytical applications, is to acquire Truvalue Labs, a specialist AI-driven environmental, social, and governance (ESG) data.
The transaction is expected to close later this year and is not expected to have a material impact on FactSet’s fiscal 2021 results.
Founded in 2013 and headquartered in San Francisco, Truvalue Labs applies AI-driven technology to over 100,000 unstructured text sources in 13 languages, including news, trade journals, and nongovernmental organisations and industry reports, to provide daily signals that identify positive and negative ESG behaviour. It covers 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) 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 behaviour.
“Truvalue Labs provides detailed and actionable ESG scores backed by a credible body of academics,” says Phil Snow, CEO, FactSet. “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.”
Truvalue Labs joined the Open:FactSet Marketplace in 2018 and its data is already successfully integrated for use with current FactSet content and products, including the FactSet workstation. Clients have cited its strong signaling methodology, daily updates, and alignment with SASB as positive differentiators in the crowded ESG data market. Truvalue Labs has also won numerous industry awards, including Best AI/Machine Learning Data Initiative from Inside Market Data and Best Independent House for ESG Research from the ESG Investing Awards.
“We are extremely excited to be joining the FactSet team,” says Hendrik Bartel, CEO and Co-Founder, Truvalue Labs. “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.”
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