Arabesque today announced an agreement to provide the world’s largest pension fund, the Government Pension Investment Fund (GPIF), with ESG data through its proprietary technology Arabesque S-Ray®.
S-Ray® is an algorithm-based tool that analyses the sustainability performance of the world’s largest listed corporations using self-learning quantitative models and data scores, and will be used for ESG measurement by GPIF.
The technology works by systematically combining over 500 ESG metrics with news signals from over 50,000 sources across 15 languages. It is the first tool of its kind to rate companies on the normative principles of the United Nations Global Compact: Human Rights, Labour Rights, the Environment, and Anti-Corruption (GC Score). Additionally, S-Ray® provides an industry-specific assessment of companies’ performance on financially material sustainability criteria (ESG Score). Both scores are combined with a preferences filter that assesses a company’s business involvements.
With USD $1.4 trillion under management, GPIF is increasing its commitment to ESG investment having become a signatory to the Principles for Responsible Investment (PRI) in 2015.
Georg Kell, Chairman of Arabesque, said: “Driven by investor demand, technology and big data, ESG investing is gaining momentum globally, and particularly in Japan. We are delighted that the Government Pension Investment Fund will utilise Arabesque S-Ray®, our ESG data aggregator tool, to measure and analyse the impact of its portfolios going forward. GPIF is highly influential across the region and internationally, and their shift towards ESG integration will be noted by investors around the world.”
John Ruggie, Professor in Human Rights and International Affairs at the Harvard Kennedy School, said: “ESG investing is one of the fastest growing segments in the investment universe, as innovative investors have come to realize that concern for profits, people and the planet form an intricate and mutually reinforcing ecosystem. By using Arabesque S-Ray®, GPIF will put itself in a position to stay ahead of the pack.”