FactSet has entered into a definitive agreement to acquire ESG data provider TruValue Labs, the companies announced on Tuesday.

TruValue, which was founded in 2013, applies natural language procession (NLP) to over 100,000 unstructured text sources to provide daily signals that identify positive and negative ESG behaviour. Its signals are mapped against the Sustainability Accounting Standards Board (SASB) standards and the United Nations Sustainable Development Goals (SDGs).

“ESG funds have seen record inflows this year and client demand for valuable, up-to-date ESG signals is high,” said Phil Snow, CEO of FactSet. “Combining Truvalue Lab’s offering with FactSet’s content and technology suite will add value across our businesses.

The two firms have had a formal relationship since July 2018, when TruValue announced it had launched its dataset on the Open:FactSet Marketplace.

The deal is expected to close later this year. Terms were not disclosed.

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