FactSet to bolster ESG data offering with Truvalue Labs acquisition
Global financial data provider FactSet on Tuesday entered into a definitive agreement to purchase Truvalue Labs, a San Francisco-based provider relying on artificial intelligence and focused on environmental, social, and governance (ESG) data. The transaction is due to close by year-end and is not expected to have a material impact on FactSet’s fiscal 2021 results.
Established in 2013, Truvalue Labs applies AI-driven technology to over 100,000 unstructured text sources in 13 languages, including news, trade journals, and non-governmental organisations and industry reports, to provide daily signals that identify positive and negative ESG behaviour.
Its coverage encompasses over 19,000 public and private companies. Truvalue Labs' process generates short-term, long-term, and momentum scores derived from hundreds of signals, beingma pped against the Sustainability Accounting Standards Board (SASB) standards and United Nations Sustainable Development Goals (SDGs).
Commenting on the deal, 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.”