Preqin ESG Solutions 35 Data update We apply our methodology every time a deal involving any private company is struck. As a result, we generate new risk process exposure scores at the levels of portfolio company, fund portfolio, and fund manager. This is an ongoing process. Once the deal has been recorded and is visible on Preqin Pro, these scores are updated by the beginning of the following week. The underlying model is scheduled for annual revisions, featuring enhancements and dataset additions. These updates will be announced through client communication. Our selection of data sources is meant to be organic in nature. Once they become available and run through our quality assurance, new studies and data will be incorporated into Preqin’s risk assessment. Our process for updating ESG Risk Exposure Scores data is an action tree: • Issue relevance: in cases where SASB updates a material issue (via addition, removal, or redesign), review of underlying scoring methodology may be required • KPI updates: KPI-driven scores with updated data sources will be updated annually with new raw data, remapped and rescaled. This may require: • Changing industry designations/mapping (e.g. “Home Repair Services” may adjust to an alternate industry taxonomy code) • Filling data gaps (i.e., prior years have data, current year is missing data but can be interpolated, estimated, or chosen for removal) • Replacing datasets entirely (i.e., the source data is no longer updated, valid, or otherwise compromised). • New research: Research refreshes will be conducted each year to con昀椀rm we are using the best available data for each issue • Quality analysis: Data will be reviewed by the data science team at Preqin to identify outliers, issues, or algorithmic bias. • Publication: Prior to publication of a new dataset, communications will be sent to clients with a summary of any relevant changes. ↗ Back to Contents