Financial analytics company FactSet has announced its acquisition of Truvalue Labs, a firm specializing in AI-powered environmental, social, and governance (ESG) data. The financial details of the transaction have not been made public.
Truvalue Labs, based in San Francisco, leverages artificial intelligence to analyze over 100,000 unstructured text sources in 13 languages, including news articles, trade publications, and reports from non-governmental organizations. This technology delivers daily insights that highlight both positive and negative ESG activities.
The company’s extensive coverage includes more than 19,000 public and private enterprises, generating various scores related to short-term, long-term, and momentum metrics derived from numerous data signals. These scores align with the standards set by the Sustainability Accounting Standards Board and the United Nations Sustainable Development Goals. This alignment enables investors to assess ESG risk factors and evaluate real-world actions for quantitative analysis and back-testing purposes.
Phil Snow, CEO of FactSet, commented on the acquisition: “ESG funds have experienced unprecedented inflows this year, and there is significant client demand for timely, actionable ESG insights. The integration of Truvalue Labs’ capabilities with FactSet’s technology and content will enhance value across our operations.”
The deal is expected to conclude later this year and is anticipated to have minimal impact on FactSet’s fiscal results for 2021.