According to an announcement, the minds behind ESG analytics startup Act Analytics will move to Sustainalytics, owned by Morningstar, ESG rating and analytics firm Sustainalytics by the end of October.
Act Analytics Founder and CEO Zachary Dan will take on the role of Director of Digital Innovation at Sustainalytics.
“Sustainalytics gives us an incredible environment to drive innovation and technology in the ESG space,” wrote Dan in a statement WealthManagement.com. “I’m very excited about the data-driven ESG insights we will deliver.”
For readers unfamiliar with Act, the company’s primary platform was designed from the ground up for retail financial advisors and wealth managers to help them have value-driven conversations with their clients.
It uses a proprietary ESG scoring methodology and algorithm that seeks to remove much of the complexities of tools currently available to consultants and has been billed at $ 250 per consultant per month.
In December, Dan and his team launched a news analytics tool that uses real-time natural language processing to identify companies in news stories and calculate an ESG ranking based on the information.
Under the hood, the algorithm identifies sub-narratives, analyzes grammar, topics and calculates sentiment based on 10 ESG categories. The values range from 0 to 100, with zero being the most negative and 100 being the most positive.
It is the mindset and expertise in natural language processing and machine learning application behind this tool and the full Act platform that Morningstar / Sustainalytics recognize in engaging the team.
It was noticeable that there was no mention of Act’s current products and intellectual property.
Many consultants first heard about the company and its platform when they took part in the 2020 season of the FinTech accelerator competition ScratchWorks.