Preqin ESG Solutions 37 investment strategies. In the case of the alternatives market, lack of data is still a challenge, leading to risk exposure analysis that is often uncertain and full of gaps. However, analysts say the true limiting factor is bandwidth. To access and use data in a structured way, ESG analysts need to make multiple simplifying assumptions that cannot be veri昀椀ed. As a result, the proposed strategy may be driven not by evidence, but by prior assumptions – and the process of getting there is tedious, labor-intensive and costly. To address the data and bandwidth availability issues limiting sustainable 昀椀nance applications in Alternatives, we provide an out-of-the box solution. It enables you to e昀昀ortlessly integrate performance against risk – across key sustainability factors – into your private market investment strategy and portfolio management. The Private Company ESG Risk Metrics is the only solution available in private markets that provides comprehensive coverage of ESG risk metrics, from individual assets, through portfolios, to fund manager level. This component delivers estimates of carbon emissions, water withdrawal and employee growth and turnover for private companies, all at your 昀椀ngertips. We generate our estimates using a consistent, robust, transparent methodology that was designed to function well with incomplete or missing data. Private Company ESG Risk Metrics overcomes the barriers to entry to the analysis of performance against ESG risk, delivering informative proxies that can guide decisions even when the actual data is absent. 5 The purpose of Paris Agreement is to limit the global temperature increase to 1.5-2.0 °C in comparison to pre-industrial levels. ↗ Back to Contents
Preqin ESG Solutions Methodology Page 36 Page 38