Preqin Releases ESG Indicators

October 2, 2019 | Alts Education, Insights, News
https://dailyalts.com/wp-content/uploads/2019/10/57e2d54a4d5aa814ea898579ce203e7c1d22dfe05451714b772a7cd2_640.jpg

The research firm can score ESG factors for private capital funds and investors’ portfolios

Preqin ESG scoring is now an offering for companies.

Preqin established a methodology and standard benchmark. This proprietary offering rates private capital funds and investors’ portfolios based on ESG factors.

The ESG indicators can drive improved transparency and engagement in the private markets, according to the company. The firm says that a new common benchmark for ESG factors across funds will improve manager analysis. It would further help managers assess performance against ESG and financial targets.

“Preqin ESG Indicators are meant to help investors, fund managers and other private market players get on the same page with how environmental, social and governance considerations are factored into capital allocation and deployment decisions”, said Preqin Chief Product and Marketing Officer Dmitri Sedov. “We designed the product to provide asset owners with a common, meaningful baseline in their conversations with fund managers about ESG across their private market investments.”

The firm leverages several frameworks to provide these factors. Inputs include factors from the Sustainability Accounting Standards Board’s (SASB) and the UN Sustainable Development Goals Index. The firm said it then applies these benchmarks to private capital deals data, a fund-level performance database, and industry taxonomy

Preqin ESG Indicators

In a recent blog post, Sedov cited the importance of transparency and ESG to the private capital markets.

He said that the industry could “bring greater transparency and information symmetry to ESG policies across the company spectrum.”

He further cited the need for greater transparency from start-ups to (small and midsize enterprises) and unicorns. “Through better data, disclosure, and reporting, private capital will be a driving force in bringing ESG investing to light,” he said.

Other industry leaders have echoed such sentiments.

“The private markets lack transparency, consistency, and comparability when it comes to understanding and evaluating ESG factors for portfolio companies,” said CAIA’s Jeff Cohen.

 

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Shape

Latest Alternative Investment News

https://dailyalts.com/wp-content/uploads/2021/11/hand-plus-btc-plus-india-colors.png
Digital Assets: India To Clamp Down On Cryptocurrencies Via Legislation By Year-End
November 24, 2021     Digital Assets, Latest News, News

The legislative agenda for the upcoming winter session of the Lok Sabha, the lower house of India’s parliament, shows that a bill titled “The Cryptocurrency and Regulation of Official Digital…

https://dailyalts.com/wp-content/uploads/2021/11/Klarna-HQ-in-Stockholm-scaled.jpg
FinTech: Klarna Launches “Pay Now” In The US, Klarna Card Soon To Follow
November 24, 2021     FinTech, News

Klarna, the Stockholm-headquartered fintech powerhouse last valued at $45.6 billion, has brought a “Pay Now” offering to consumers at retailers wherever Klarna is accepted. The company also announced a Klarna…

https://dailyalts.com/wp-content/uploads/2021/11/fb-default.b5dd38d9c4194731a32674e7e89fe658.jpg
Venture Capital: Agtech And Farmer-To-Farmer Platform FBN Raises $300M
November 24, 2021     ESG and Sustainability, News, Venture Capital

Farmers Business Network (FBN) is a farmer-to-farmer network launched in 2014 as an information source and for sharing of agronomic precision data. It now has thousands of farmer-members managing millions…

https://dailyalts.com/wp-content/uploads/2021/11/img13-2400.jpg
Venture Capital: Arc, Which Makes $300K Electric Boats, Snags $30M
November 24, 2021     News, Venture Capital

Arc, a startup led by former SpaceX engineers and developing electric boats, announced its $30 million Series A raise led by Greg Reichow, a former Tesla VP of Production, now…