Preqin ESG Solutions 3 Introduction to Preqin ESG Solutions The alternative investments market is private and, therefore, inherently opaque. De昀椀nitions and reporting are less regulated and standardized than on the public markets. It also relies on relationships. To invest in a new portfolio company, run a successful founding round, or acquire proprietary information, you need to have the right connections. An additional di昀케culty, inherent to sustainable investing, is that stakeholders disagree on what ESG is or should be. As a result, even when private market ESG data is disclosed, it is non-standardized, non- conformable and mired with transparency issues. In practice, this means it cannot be compared against data points from other entities or aggregated at a portfolio level. At the same time, the pressure to consider sustainability factors in the investment process is mounting. Stakeholders expect transparency regarding where and how the growing capital in昀氀ows into the alternatives market are invested. Institutional investors and fund manager 昀椀rms are required to comply with external regulations. Our clients’ interest in alternative investments may be a response to shareholder expectations, their clients’ reporting requirements, or simply seeing an opportunity in creating sustainable products. No matter the driver, they need a sustainability strategy – and its key ingredient is reliable ESG data. The purpose of Preqin ESG Solutions is to unlock the power of non-昀椀nancial data points to enable our clients to make informed and future-resilient investment decisions. ↗ Back to Contents