Preqin ESG Solutions 12 • Fund labels • Investment mandates • Contact details to the ESG team Considered jointly, these six components make up a 360-degree view of a 昀椀rm’s sustainability standards and practices. Our ESG Pro昀椀les module enables you to evaluate the level of ESG integration in a fund manager or institutional investor 昀椀rm and compare that against the market. In the opaque world of alternatives, where recognized standards do not exist and disclosure data is not available, a uni昀椀ed approach to the assessment of ESG integration and sourced the data is essential – and this is what we have developed. To understand what best practice in alternatives could look like, our ESG research team adapted recognized public market methodologies for the nuances of private markets. First, we identi昀椀ed a common set of KPIs critical to the evaluation and comparison of ESG management across 昀椀rms, which we subsequently used. Next, we collated disclosures and direct submission from the 昀椀rms themselves, standardizing and curating all the sourced data. Finally, we ran the data of every fund manager and institutional investor listed on our platform through this framework, and made the results easily accessible. This task, which required a substantial amount of expertise, eradicated a barrier to entry regarding the assessment of ESG integration across the entire alternatives market that our clients might 昀椀nd too costly or time consuming to surmount. As a result, Preqin Pro became the only database on the market with private market ESG data on fund managers and institutional investors at scale. It is the only standardized tool, and therefore the point of reference, for investigating what “ESG for fund managers and institutional investors” means in practice. Our ESG pro昀椀les provide an account of the management practices 昀椀rms have in place, although they do not measure how well these standards are implemented. At the time when we compile this document the functionality of ESG Pro昀椀les module remains unrivalled, since there is no other place on the market to obtain comparable data. ↗ Back to Contents
Preqin ESG Solutions Methodology Page 11 Page 13