Preqin ESG Solutions 15 ESG Transparency KPIs The Transparency KPI component covers any ESG policies, management practices, and rules of doing business that have been disclosed and updated within the past 2 years. Fund managers can use it to pinpoint areas of ESG governance where they are weaker than their peers – and, therefore, where improvements need to be made to attract investors. Institutional investors can use Transparency KPIs, in conjunction with the ESG A昀케liations and ESG Contacts components, to identify fund managers with an ESG-integrated investment work昀氀ow. Used in tandem with our ESG Risk Analytics module, Transparency KPIs enable you to highlight ESG policies that are potentially insu昀케cient, if their ESG-related risk exposure doesn’t tally with stated policies or commitments. Transparency KPIs identify and track indicators relevant to ESG policies, practices and initiatives of GPs and LPs. There are 37 indicators for GPs, and 12 for LPs. By leveraging established ESG frameworks and standards, Preqin has curated a set of core ESG data points, speci昀椀cally applicable to private markets. Relying on valuable input from our ESG Advisory Council, comprised of more than 50 clients who partner in our research and development program, this product was designed to incorporate and build upon existing domain knowledge. KPIs were sourced from the following frameworks: • The Sustainability Accounting Standards Board (SASB) • List of indicators as part of the Materiality Map for Asset Management sector ↗ Back to Contents
Preqin ESG Solutions Methodology Page 14 Page 16