At a Glance: FactSet Truvalue SDG Scores DataFeed

FactSet's Truvalue product suite provides material data and scores regarding corporate alignment with the UN Sustainable Development Goals (SDGs) based on a variety of third-party stakeholder perspectives.

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Basics

Content Category: ESG

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FactSet's Truvalue product suite harnesses the power of ESG Big Data through artificial intelligence to provide material data and scores that are continuously updated. The foundation of the SDG DataFeed product is the United Nations’ Sustainable Development Goals (SDGs). Truvalue data offers daily tracking of corporate alignment with the SDGs, based on a variety of third-party stakeholder perspectives. This data is analyzed from a company ESG performance perspective, with relevant behavior mapped to key SDGs. That approach adapts to the original high-level goals that the UN established for the SDGs, which target international policy and cooperation.

Data Overview

Asset Class: Public and Private Companies

Data Frequency: Daily

Delivery Frequency: Daily

History: Data available back to 2007 

aag truvalue labs sasb sdg september 2022

Data Methodology

Data that tracks company alignment with the SDGs is often derived from company-provided materials; revenue mapping is also used to determine alignment. This provides an inherent inside-out perspective on ESG—in other words, showcasing primarily what companies chose to disclose. Truvalue data collects a range of stakeholder viewpoints to better capture the totality of actual company behavior.

aag sdg scores sdg definitions

After mapping relevant company issues to their respective SDG, Truvalue calculates company-level and goal-level Pulse, Insight, and Momentum scores on a 0-100 scale for each SDG. These calculations are based on all of the data it collects that is tagged to that specific company and that specific SDG.

Pulse scores reflect the short-term performance of a company as it focuses on events of the day. Insight scores are derived from Pulse scores and reflect the long-term performance of a company, while Momentum reflects the trend of a company’s scores over a trailing twelve-month period. Goal-level Pulse, Insight, and Momentum scores created for each individual SDG are denoted by their respective Goal names and score type (e.g., Goal 16 Pulse). The aggregate company-level Pulse, Insight, and Momentum scores are simply called “Impact Pulse,” “Impact Insight,” and “Impact Momentum.”

momentum truvalue

Use Cases

Identify the Key Goals Where Companies and Aggregates Have the Most Impact with Dynamic Materiality 

  • Truvalue’s timely dataset, which measures stakeholder attention by company, allows a volume-based analysis of the most important issues for a company—or aggregated up to a portfolio, industry, sector, or benchmark level.

    The measure of volume for a specific Goal versus overall volume is a score called “Dynamic Materiality,” which for impact investors motivated by Goal alignment, can be considered “Dynamic Impact.”

    That can be seen in the following example that compares the most important Goals—and the sentiment, coded in green, red, and gray—for the Solactive GBS Global Markets Large & Mid Cap USDG Index, versus car manufacturers found in the FactSet RBICS Industry. This data was pulled for a research brief on Automakers and SDGs in December 2020.

    aag sdg scores solactive 

View the Changing Importance of Issues over Time for a Cohort or Company with Dynamic Materiality/Dynamic Impact

  • The chart below shows the changing share of total data volume for the cohort of Asian automakers within the RBICS Car Manufacturers Industry. Goal 3 (i.e., Good Health & Wellbeing), spiked in 2010 as Toyota belatedly acknowledged sticky pedals leading to uncontrolled acceleration, and initiated a recall.

    aag sdg scores toyota

Access a Timely, External Perspective on SDGs

  • Truvalue’s timely dataset, which goes beyond revenue alignment to capture actual company behavior, addresses numerous key needs of investors, including: 
    • Portfolio Construction and Product Design
    • Reporting, Key Performance Indicators (KPIs), and Impact Transparency
    • Year-Round Analysis vs. Annual Reports
    • Protection from Greenwashing
    • Portfolio Alignment
    • Financial Materiality
    • Scale 

The details provided above are as of September 2022.

If you have any questions or would like to learn more about any of the content mentioned above, please contact us at sales@factset.com.

Please visit the product page on the Open:FactSet Marketplace for more information: FactSet Truvalue SDG Scores DataFeed.

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