ACA Group has bought ESG ratings and data provider Ethos ESG, its first expansion into the analytics space.
ACA runs technology platform ComplianceAlpha and is a governance, risk and compliance adviser in financial services with offices across the US, London and Malta.
The acquisition of Ethos ESG will allow the firm to create a tool for clients combining both ACA integrated tech and advisory offering – which includes information on policies, procedures, and alignment with regulations and voluntary frameworks – with Ethos’s evaluation of over 350,000 impact ratings including companies, stocks, and funds through a filter of 45 ESG causes such as climate change, racial justice and mental health, for example.
This, the company said, will assist clients with advice, analysing investments and also by automating several elements of ESG reporting.
“This is an exciting step in helping to grow our presence in the ESG space and is ACA Group’s first foray into analytics as a service,” said Shvetank Shah, chief executive of ACA Group. “We are invigorated to be building out and launching our data capabilities, starting with Ethos ESG. Combining data with our scalable solutions will continue to empower our clients to reimagine GRC and protect and grow their business.”
Ethos ESG uses a proprietary set of approximately 100 underlying databases to generate its impact ratings. It provides full transparency into how each impact score is calculated, and allows users to understand the ESG characteristics of their investments and make responsible decisions that align with their firm’s values and ESG commitments. It recently launched the Impact Calculator, which takes a dollar amount and immediately calculates the real-world equivalent impact of investing that amount in a specific fund or other product, compared to a benchmark.
Talking about the acquisition, Luke Wilcox, founder and chief executive of Ethos ESG, said: “We are thrilled to partner with ACA Group, as their brand and reach in the GRC space is well-known.
“Not only is taking into consideration the ESG impact of your decisions right on its merits, but greater transparency into ESG issues helps firms mitigate risk and make informed choices while growing sustainably.”
Financial details of the acquisition were not disclosed.
This article first appeared on our sister publication ESG Clarity.
