European global asset management company DWS Group has acquired a minority stake in Arabesque S-Ray, a Frankfurt, Germany–based ESG-scoring provider, for an undisclosed amount.
The transaction grants DWS a 2.68 percent stake in the company.
Arabesque S-Ray uses machine learning and big data to analyze the sustainability performance of more than 7,000 listed companies. S-Ray systematically combines more than 200 ESG criteria with news signals from over 30,000 sources from 170 countries.
DWS plans to use the S-Ray results as an additional source for its ESG engine, enhancing its ability to deliver better solution to its clients.
DWS is also in exclusive talks with Arabesque regarding a potential significant minority stake in the Arabesque AI Engine, media sources say.
The AI engine combines big data, machine learning and high-performance computing to create an intelligent stock price forecasting system.
Together, the two partners plan to further develop the AI Engine, combining DWS financial market expertise with Arabesque’s knowledge of digital and machine learning.
The transaction comes as Arabesque S-Ray formed a series of larger strategic partnerships with DWS and three other new co-investors: Allianz X, Commerz Real AG and Land Hessen.
The new strategic partnerships will allow Arabesque S-Ray to enhance its client relationships and expand its business by developing new ESG data products and services to meet growing global demand for sustainability information, according to Arabesque.
