Preqin ESG Solutions 68 Indicator Guidance _____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ A formal diversity policy or initiative This is marked as disclosed if the 昀椀rm speci昀椀cally mentions the existence of a diversity policy or discloses the policy itself. This can include a formal policy, an actual initiative or target for inclusion in hiring, a process to hire more diverse candidates, or adoption of a third-party policy on diversity. Discloses a public Sustainability Report This is marked as disclosed if the 昀椀rm has released a sustainability, corporate responsibility, CSR, ESG, socially responsible, impact, or other ESG/impact-related report within in the past two years. This may include UNPRI Public Signatory Reports. Statements, policies, or initiatives This is marked as disclosed if the 昀椀rm discloses any statements, policies, or related to climate change initiatives related to climate change, carbon, or emissions. This is related to the company itself, which may include statements regarding the risks of climate change, announced initiatives to measure or manage climate risk as part of a 昀椀rm’s business model or investment strategy, or disclosure of a carbon or climate change-related policy. General partner 昀椀rm-level carbon This is marked as disclosed if the 昀椀rm discloses their Scope 1, Scope 2 and/or or GHG emissions Scope 3 GHG emissions. This must include numerical 昀椀gures, generally recorded in tons. Additionally, this indicator will also be considered disclosed if a 昀椀rm adheres to ISO14064, as this is the international standard for disclosure. Any mention of ESG Mention of ESG consideration in a 昀椀rm’s investment process. This may include the consideration in investing disclosure of an ESG policy or any mention of ESG as a factor, consideration, or potential risk or opportunity in investing. An investment policy that Any disclosed investment policy that mentions the consideration of ESG in includes ESG issues investing. This speci昀椀cally refers to an investment policy that extends beyond ESG in 昀椀rm operations. A policy detailing engagement Disclosure of an engagement policy that details a general engagement process processes with portfolio companies with portfolio companies on any topic or issue. This must include evidence of a process or issue that exempli昀椀es how engagement happens. An engagement process or Disclosure of an engagement policy that details a engagement process with considerations speci昀椀cally focused on portfolio companies on ESG speci昀椀c issues. This must include evidence of a ESG issues with portfolio companies process or issue that exempli昀椀es how engagement happens. ESG issues may include any environmental issues (waste, water, energy, pollution, carbon, regulatory 昀椀nes for environmental damage, etc), social issues (employees and employee management, social protests, religious issues, etc), or governance issues (management team composition, leadership structure, business ethics or codes of conduct, bribery, corruption, etc). The number of companies in the Disclosure of the number of companies that were reviewed for ESG issues or portfolio with whom engagements against an ESG policy either before or after investment. This does not necessarily were conducted on ESG policies need to include what they were reviewed for as long as it speci昀椀es, even or issues generically, "ESG issues" or "ESG" as the basis for review. ESG educational programs designed The existence of any formal educational programs designed for portfolio and run for portfolio companies companies that address ESG issues. This may include portfolio company trainings o昀昀ered by the GP on topics such as workforce management, environmental law, corporate structures, stakeholders, diversity and inclusion, or anything else related to ESG. A code of conduct policy for Disclosure of a code of conduct explicitly stated as applicable to portfolio portfolio companies companies. This may take the form of an ethics code, bribery code, or other code of conduct that employees must abide by. A policy specifying how ESG factors are Disclosure of a policy speci昀椀c to pre-investment due diligence that includes the used before investing in a company consideration of ESG factors before making an investment, the application of an exclusionary policy, or the consideration of environmental or social impacts of portfolio companies before investing. ↗ Back to Contents