AP1 partners up to launch ESG rating
Written by Sunniva Kolostyak
Swedish AP1 is partnering with Arabesque for new ESG technology to measure sustainability and ESG data.
As part of the collaboration, AP1 and Arabesque are developing a scoring system based on the United Nations' Guiding Principles on Business and Human Rights and Global Compact Score.
The system, called Arabesque S-Ray, works as an algorithm tool that analyses the sustainability performance of around 7,000 of the world's largest corporations.
The joint initiative is a first of its kind and the first to rate companies on the Global Compact Score.
AP1 head of sustainable value creation, Nadine Viel Lamare, said that among the ESG databases the sovereign wealth fund, the S-Ray is a welcome addition as it offers daily rating updates which are particularly valuable.
She said: “S-Ray also provides us with a score on global compact preparedness which we have been looking for. We now look forward to develop another score together with Arabesque that will help us and other investors identify salient human rights in our portfolios.”
The technology uses self-learning quantitative models and data scores, combining 200 esg metrics with the news signals from over 50000 sources and 15 languages.
Commenting on the partnership, Arabesque head of Nordics Maria Mahl, said: “We are delighted that AP1 will integrate Arabesque S-Ray, our ESG data aggregator tool, to measure and analyse the impact of its portfolios. Sweden is at the forefront of the global sustainability movement and through partnerships such as this, we are excited to help move ESG integration to the next level across the region.”