New Risk & Impact Products to Support the Integration of ESG into the Alternative Assets Industry
Preqin, the global leader in alternative assets data, tools, and insights, is proud to announce major updates to its ESG Solutions, the only product suite to provide private market participants with a 360-degree view of environmental, social, and governance (ESG) risk, impact and opportunity — across LPs and GPs, down to portfolio and private company levels.
ESG has transitioned from a nice-to-have to a must-have, as $35 trillion of assets under management (AUM) are committed to ESG-aligned investments. Up until now, only limited ESG data has existed in private markets. However, relevant data is crucial for both fund managers and investors to action ESG strategies by integrating it through the investment decision making process, from screening, to due diligence and monitoring.
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For LPs especially, performance reporting grounded in data that offers a comparable view across portfolios is more important than ever, and for GPs this means data is a must. Through the proactive implementation of ESG and impact investing, the investment industry could prove critical in driving a more sustainable future. Indeed, the size of the impact investing market is showing strong growth, reaching almost $2.3 trillion, according to 2020 data from the International Finance Corporation.
Preqin’s ESG Solutions builds on its ESG Profiles— a solution which was launched in November 2020 and covers numerous ESG transparency KPIs, disclosures, and key contacts across more than 54,000GPs and LPs — to now also provide asset-level data on ESG risk and impact across 124,000+ private companies available on Preqin Pro, the alternative assets industry’s leading source of data and intelligence. To make the very best strategic allocations, both fund managers and investors need clear visibility of ESG at the asset level to identify, measure and manage their biggest exposure areas. With private company risks coring and sub-scoring drilling down to individual ESG factors—such as greenhouse gas emissions, supply chain and employee health & safety — Preqin’s ESG Solutions is the only product specifically developed to solve the private company ESG data gap.
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The full suite of ESG Solutions gives access to:
- **ESG Profiles:**Comprehensive ESG transparency KPIs across 37,000+ GPs and17,000+ LPs in alternative assets, including policies, practices, key ESG affiliation, memberships and contacts
- **ESG Risk Evaluations:**Risk Magnitude Scores down to the specific ESG factor for 124,000+ portfolio companies and 21,000+ funds
- **Impact Assessments:**Estimates for positive impact potential across 124,000+ portfolio companies and 21,000+ funds and data for 50,000+impactlabelledportfolio companies and funds
Jaclyn Bouchard, Head of ESG at Preqin, said: “Preqin is incredibly proud of this milestone. We have been developing and refining this solution for many months, including with the help of our ESG Council made up of global GPs, LPs, and a cademics representing £2.16tn in AUM. Together, we wanted to find answers to the biggest question in private markets — how do we correctly source asset-level private company ESG data?The support, feedback, and industry insights of the ESG Council has proven invaluable to Preqin’s journey, helping us to create the solutions we can now offer today.”
Bouchard continues: “It is Preqin’s mission to ensure that every decision taken in alternative markets is a sustainable one. With this expansion of our ESG Solutions product suite, we are now able to provide private market professionals with the data and insights they need to meet the expectations of their stakeholders, make informed decisions and take a data-driven approach to integration.”
Preqin is the Home of Alternatives TM, the foremost provider of data, analysis, and insights to the alternatives industry. The company has pioneered rigorous methods of collecting private data for almost 20 years so that 170,000+ global professionals are streamlining how they raise capital, source deals and investments, understand performance, and stay informed. Through close partnerships with its clients, Preqin continuously builds innovative tools and mines new intelligence to enable them to make the best decisions every day.
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