Preqin ESG Solutions 38 Highlighted Private Company ESG Risk Metrics use cases for Fund Managers • If you’re managing a thematic fund with a focus on climate change, you can incorporate risk exposure estimates into your screening process, early assessment and pre due diligence of private portfolio companies. • Once a deal is closed, you can benchmark ESG KPIs for that company against similar entities and the broader market. • Our carbon emission data will help you evaluate the impact of diverse decarbonization scenarios on the performance of private companies in your portfolio, thus strengthening your investment thesis. • You can make your investment strategy more future- resilient by using our data on performance against sustainability risks. Private Company ESG Risk Metrics for Investors • Increase visibility of your investment’s climate-risk exposure, even if the information coming directly from the fund you’re invested in is limited. • Track the performance of your investments against key sustainability factors. • Verify the alignment of your climate risk strategy with the Paris Agreement, Net Zero initiatives, and/or international development agenda. Private Company ESG Metrics increases the transparency of an otherwise opaque market. It facilitates communication between fund managers, institutional investors, and service providers by providing a complete picture, so you can enhance your ESG analysis and reporting with the information that matters. Since 昀椀rm-driven disclosure data is not available in private markets, our metrics are estimates. However, Preqin’s ESG Team has devised a robust methodology to 昀椀ll in these gaps and to ensure – in the absence of actual data – that these estimates are well-grounded and informed. Our proxies are ↗ Back to Contents