Truvalue Labs selected by pension fund to evaluate ESG risks
Analytics firm will evaluate ESG and reputational risks across all Brunel Pension Partnership's managers and holdings for equities and bonds
Truvalue Labs, which analyzes AI-driven environmental, social and governance (ESG) data, has been appointed by the UK’s Brunel Pension Partnership to evaluate the ESG and reputational risks across all Brunel’s managers and their holdings for listed equities and bonds.
Brunel was the first of the Local Government Pension Scheme, or LGPS, funds to become a signatory to the UN-supported Principles for Responsible Investing (PRI) and has, in partnership with its client funds, “embedded ESG considerations into all of its decision-making processes,” says Faith Ward, chief responsible investment officer, Brunel Pension Partnership. “Responsible investment is central to how Brunel fulfils its fiduciary duty."
“We appoint managers that share the view that concentrating on the fundamental long-term performance of businesses, which includes the integration of risks, is most likely to deliver a successful long-term performance outcome,” says Ward.
Of Truvalue Labs, Ward comments, “We like the objectivity of Truvalue Labs’ data that isn’t dependent upon what companies publish about themselves. Their timely material ESG data helps us to continually monitor the managers in our client partners funds and to evaluate and select new managers.”
Truvalue Labs leverages its powerful Truvalue AI engine to process vast amounts of data in seconds and score companies on key measures. For example, the Insight score ranks ESG behaviour at a given point in time, and the momentum score shows the company’s trajectory of ESG performance – whether it is improving or declining.
“It can be difficult to find data that captures the ups as well as the downsides, but Truvalue Labs covers both positive and negative aspects of companies’ ESG track records,” says Helen Price, assistant investment officer at Brunel.
“We think that this combination of the long-term and momentum is a strength over other tools that may just be using a single rating,” Ward says. “We evaluated a number of providers on the market and concluded that Truvalue Labs had the tool we wanted as a primary source, both for communicating with managers and for evaluating the risks in our portfolios,” she concludes.
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