BOSTON--(BUSINESS WIRE)--
State Street Corporation (NYSE:STT) and TruValue Labs, a provider of artificial intelligence-driven environmental, social and governance (ESG) data, today announced an agreement to promote the adoption of industry-standard ESG data produced according to the Sustainability Accounting Standards Board (SASB) framework.
TruValue Labs leverages artificial intelligence to review thousands of information sources each day and provide signals founded on real-time sustainability data analytics to investors, financial institutions and corporations. As part of the agreement, State Street will gain access to one of TruValue Labs’ ESG signals, based on SASB’s industry-leading materiality framework, which identifies sustainability issues at the industry level.
According to a recent study of both retail and institutional investors from State Street’s Center for Applied Research, 60 percent of respondents note a lack of industry standards for measuring ESG performance as a significant barrier to full integration[1]. Additionally, benchmarking is also seen as one of the greatest challenges, as more than half of respondents say they find it difficult to benchmark performance against peers.[2]
“Successful ESG investing is not possible without full data transparency into companies’ non-financial factors,” said John Plansky, global head of State Street Global Exchange. “State Street is committed to delivering timely and consistent ESG data and insights to our clients. This partnership with TruValue Labs is the next step in helping investors factor sustainability-related impacts when making decisions.”
In addition to leveraging SASB’s framework, State Street and TruValue Labs plan to collaborate on research and the development of new products and solutions that will ultimately provide investors with the tools they need to further integrate key sustainability insights into their decision making processes.
“We’re thrilled to partner with one of the world’s leading financial services providers,” said Hendrik Bartel, CEO and co-founder of San Francisco-based TruValue Labs. “This will give State Street clients the ability to use the SASB framework in decision making.”
“State Street and TruValue Labs are united by a mission of improving the transparency and availability of data that will allow investment professionals to meaningfully analyze risk and identify opportunities that can be found beyond compulsory financial fillings,” said Mark McDivitt, head of ESG Solutions at State Street Global Exchange.
"Sustainability issues impact financial performance in specific ways that vary by topic and industry," said SASB Director of Capital Markets Policy & Outreach Janine Guillot. "Today’s announcement will help the investment industry begin to compare company performance on material sustainability topics in the context of industry characteristics and value drivers."
About State Street Corporation
State Street Corporation (NYSE: STT) is one of the world's leading providers of financial services to institutional investors including investment servicing, investment management and investment research and trading. With $29.83 trillion in assets under custody and administration and over $2 trillion* in assets under management as of March 31, 2017, State Street operates globally in more than 100 geographic markets and employs 34,817 worldwide. For more information, visit State Street's website at www.statestreet.com.
*Assets under management were $2.56 trillion as of March 31, 2017. AUM reflects approx. $33.33 billion (as of March 31, 2017) with respect to which State Street Global Advisors Funds Distributors, LLC (SSGA FD) serves as marketing agent; SSGA FD and State Street Global Advisors are affiliated.
About TruValue Labs
TruValue Labs is a data and risk analytics company which provides objective, timely, and alternative data sets that reveal intangible value by leveraging artificial intelligence. The core technology is the flexible InsightEngine,™ which captures extra-financial signals from unstructured data with a focus on Environmental, Social, and Governance (ESG) criteria. TruValue Labs delivers increased transparency to financial markets by providing analytics that go beyond traditional fundamentals, offering SaaS-based platforms, as well as state-of-the art API’s that allow for easy integration.
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[1] The study is based on a global survey of 582
institutional investors who are, or plan to, implement environment,
social and governance (ESG) into their investment process and 750
individual ESG and non-ESG investors.
[2] The study is
based on a global survey of 582 institutional investors who are, or plan
to, implement environment, social and governance (ESG) into their
investment process and 750 individual ESG and non-ESG investors.
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