Preqin ESG Solutions 56 Step 1: If a private company or an infrastructure asset in our database is in a portfolio of an impact fund, it is considered “Very Likely” Identify to produce a positive impact. assets already Preqin uses fund managers’ public and private disclosures to in known identify the funds labeled as impact funds. Their investment philosophy is to generate positive and measurable social and impact funds environmental impact alongside a 昀椀nancial return. We use this tag to identify the assets to which these impact funds have allocated capital. Our working assumption is that the impact potential of the underlying assets has been evaluated by the fund manager’s investment team. If an asset in our database has been tagged to an impact fund, we do not identify a particular data point in support of that impact, nor do we assess the scale of the impact. We tag it as having been identi昀椀ed as an impact investment by an impact fund manager. Step 2: If a private company or an infrastructure asset is operating in an Identify impact sector, it is considered “Very Likely” to generate impact. Preqin leverages its granular taxonomy to identify industry assets in verticals, secondary industries and primary industries that are known impact inherently aligned with SDG goals and irrefutably entail impact. These sectors tend to target new or under-served markets. industries The full list of sectors we identi昀椀ed as associated with having impact, which includes renewable energy, micro-昀椀nance, education, and health. ↗ Back to Contents