DWS Group (DWS) has acquired a minority stake of 2.68 percent in Frankfurt-based ESG-scoring provider Arabesque S-Ray GmbH. Furthermore, both parties want to cooperate going forward. The parties agreed to maintain confidentiality on the price of the transaction and further financial details. The closing of the transaction already took place.
Arabesque S-Ray offers a variety of services and products in the field of ESG. Via its innovative data tool S-Ray, it monitors and allows clients to assess the sustainability performance of more than 7,000 listed companies according to a range of parameters: Through machine learning and big data, S-Ray systematically combines over 200 environmental, social and governance (“ESG”) metrics with news signals from over 30,000 sources published in over 170 countries and derives ESG information. It offers a variety of scores that are calculated through machine learning algorithms.
DWS plans to use S-Ray’s scores as an additional source for its ESG Engine. This further enhances DWS’ leading ESG capabilities to deliver innovative tailor-made solutions to its clients. Cooperating with Arabesque and adding their outstanding expertise in sustainability and in scoring technologies, DWS underscores its pledge to use next generation ESG scores to meet future challenges as part of its overall commitment to sustainable investment.
”Sustainability is at the core of what we do. We want to continue to deliver new solutions to our clients and make even better investment decisions for them in this paradigm-shifting era. Our investment in and cooperation with Arabesque S-Ray is another step for DWS towards taking a leading position in the field of sustainable investment”, said Asoka Woehrmann, CEO of DWS.
“Sustainability is shaping the future of every major company across the world, as well as the actions of investors with trillions of dollars of assets under management. We are thrilled to welcome DWS as investor in Arabesque S-Ray, and look forward to working together to lead the market in the adoption of ESG data technology”, said Andreas Feiner, CEO of Arabesque S-Ray.
In addition, DWS is in exclusive talks with Arabesque about a potential significant minority stake in Arabesque’s AI Engine to strengthen DWS’ AI capabilities. The AI Engine combines big data, machine learning, and high-performance computing in order to build an intelligent system to especially predict stock price developments. Together, the two partners intend to develop the AI Engine further – combining DWS’ financial markets expertise with Arabesque’s digital and machine learning know-how – as the trend towards automation and digitalization in the asset management industry continues. The collaboration could also lead to new investment strategy offerings including sophisticated AI products.
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About DWS Group
DWS Group (DWS) is one of the world's leading asset managers with EUR 704bn of assets under management (as of 31 March 2019). Building on more than 60 years of experience and a reputation for excellence in Germany and across Europe, DWS has come to be recognized by clients globally as a trusted source for integrated investment solutions, stability and innovation across a full spectrum of investment disciplines.
We offer individuals and institutions access to our strong investment capabilities across all major asset classes and solutions aligned to growth trends. Our diverse expertise in Active, Passive and Alternatives asset management – as well as our deep environmental, social and governance focus – complement each other when creating targeted solutions for our clients. Our expertise and on-the-ground-knowledge of our economists, research analysts and investment professionals are brought together in one consistent global CIO View, which guides our strategic investment approach.
DWS wants to innovate and shape the future of investing: with approximately 3,600 employees in offices all over the world, we are local while being one global team.