Preqin ESG Solutions 60 Data update process Our impact potential model relies on data from three inputs: investment fund tags, industry tags and our NLP model. The process for updating Impact Potential data runs as follows: • Every time a new fund tagged as “impact” is featured on Preqin Pro, each of its portfolio companies is immediately assessed as “Very Likely” to generate a social and/or environmental bene昀椀t. • Similarly, every time a deal made by an impact fund is registered on our platform, the private company or infrastructure asset it has invested in is tagged as “Very Likely” to generate impact. • Whether a given industry is associated with delivering impact is a subject of ongoing research. When the Preqin ESG Team adds to the list of impact industries, the assets in those industries will be assessed as a “Very Likely” source of impact potential. • Every time a new asset is featured on Preqin Pro that is neither in the portfolio of an impact fund nor is operating in an impact industry, it will be assigned a likelihood level after the next re-run of our proprietary NLP model. These are scheduled to take place every month. ↗ Back to Contents
Preqin ESG Solutions Methodology Page 59 Page 61