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Truvalue Labs
Truvalue Labs™, the leading provider of AI-driven environmental, social and governance (ESG) data, today announced the release of its COVID-19 data set and dedicated dashboard, Coronavirus ESG Monitor, both free to the public. The data set uses new proprietary signals, developed to capture the impact of COVID-19 in real-time through material categories defined by the Sustainable Accounting Standards Board™ (SASB™). The data set and dashboard provide critical metrics detailing the rising prevalence and related impacts of COVID-19 across sectors, industries and regions.
Currently, COVID-19 represents more than 60% of all ESG information captured by Truvalue Labs on a daily basis, and the massive growth in volume denotes the emergence of five material issues: employee health and safety; labor practices; access and affordability; product quality and safety; and supply chain management. Employee health and safety and labor practices currently represent a disproportionate share of volume (49%) indicating that leaders on these issues will likely be associated with quality management focused on long-term value creation for all stakeholders.
“Our AI engine allowed us to quickly create new signals, enabling us to understand this humanitarian crisis from an ESG perspective, ” said Andre Shepley, Director of ESG Research at Truvalue Labs. “We are assessing trends across sectors and industries, as well as corporate performance on the material issues that have emerged as a result of the crisis. Our data set holds companies accountable, focusing on what they do rather than what they say.”
“We introduced the concept of Dynamic Materiality back in January, and since then, economies have been dramatically impacted by the novel coronavirus pandemic, leading to a shift in how institutions and systems may be perceived based on crisis response,” said Hendrik Bartel, CEO of Truvalue Labs. “As companies continue to navigate this global pandemic, viewing material issues through an ESG lens can offer companies, stakeholders and investors the ability to assess, certify or amplify their commitment to positive social outcomes.”
In response to this global humanitarian crisis, Truvalue Labs created multiple COVID-19 signals that cover social impact, labor, supply chain, corporate operational responses and the economy – the first three of which overlap with SASB’s categories, drawing on the unique capabilities of its Truvalue AI™ engine. The response signal captures companies’ shifting focus, like changing production to relevant products such as ventilators or vaccines, for example, and the economy signal detects information relevant to the global economic situation and outlook. Applying Truvalue Labs’ technology beyond the bounds of ESG topics helps clients and stakeholders understand crucial trends from a macroeconomic perspective in conjunction with ESG risks.
Additionally, Truvalue Labs’ latest backtest study, “ESG Portfolio Performance in a Crisis, Q1 2020” confirms that incorporating Truvalue Labs’ ESG factor into a portfolio during increasingly volatile market environments like the current pandemic results in outperformance and lower risk. The portfolios created using Truvalue Labs ESG scores significantly exceeded the S&P 500 benchmark return.
Due to the dynamic nature of COVID-19, new information is rapidly emerging. Truvalue Labs’ ESG information is updated in real time to identify the most pressing issues as they unfold, as the identification of material issues underscores where investors should assess a company’s performance through a global pandemic. For more on Truvalue Labs’ new data set, visit coronavirus.truvaluelabs.com.
