Citi partners with Truvalue Labs to enhance ESG research capabilities

Citi has begun a collaboration with Truvalue Labs, a provider of AI-driven environmental, social, and governance (ESG) data, to accelerate its ESG research initiatives and to analyse company ESG behaviour at scale.

Citi’s Research & Global Insights group will be using Truvalue Labs data to monitor public company performance against sustainability criteria developed by the Sustainability Accounting Standards Board (SASB) and research analysts will be assessing the financial materiality of key issues. 

The Truvalue Labs data collaboration provides Research & Global Insights with a range of daily signals that identify both positive and negative ESG behaviour, independent of what companies report themselves. Truvalue Labs mines over 100,000 sources in 13 languages to identify and categorize company actions according to the industry-leading framework of the SASB. Truvalue Labs’ capabilities will benefit Citi as the company continues to develop proprietary ESG research for use across all of its divisions. 

“We are excited to be partnering with Truvalue Labs to support development of our own research into the material ESG issues which companies are tackling,” says Andrew Pitt, global head of the Research & Global Insights unit. “The ESG factors affecting companies are so dynamic in today’s complex global economy, and Truvalue will be able to provide us with real-time insights.” 

Citi’s Research & Global Insights team is developing a materiality assessment that will combine company reported sustainability disclosure information from traditional sources with Truvalue Labs’ real-time, AI-driven ESG data. By combining data from multiple sources, it accelerates the research process and will enable research analysts to quickly compare what companies say regarding their sustainability and ESG initiatives with what actions are actually being taken. Truvalue Labs covers more than 19,000 public and private companies today with plans to continue to expand its coverage and sources exponentially over the coming quarters.

Leveraging this real-time information driven by AI technology helps Citi to better understand the ESG issues that its clients are facing as well to better manage internal risks.

“We are delighted to partner with Citi, a major bank that is at the forefront of ESG research, to help enhance their innovative, next-generation ESG research platform,” says Hendrik Bartel, CEO and co-founder of Truvalue Labs. “We were excited to see Citi’s incorporation of our Coronavirus ESG data in a recent Global Insights report and look forward to our continued partnership as they roll out their ESG platform firmwide.” 

The news comes after Citi’s Sustainability, ESG and Alpha conference occurring earlier in September, which brought together leaders from the corporations and investment managers to discuss the challenges facing society and the environment. 

“As part of Citi’s 2025 Sustainable Progress Strategy, we are integrating ESG analysis into our client engagements across the firm, and are working with leading ESG data providers to supplement internal expertise,” says Val Smith, Citi’s chief sustainability officer. “The Truvalue Labs collaboration with our Research & Global Insights team is an exciting development, as it will enable us to combine internal analysis, ESG data and AI to help us gain a deeper understanding of the opportunities and risk landscapes for our clients.”