Financial materiality
Conduct a materiality assessment to identify sustainability factors that pose a risk to an investment’s financial health. Identifying critical factors enables proactive due diligence, risk management, mitigation of adverse impacts, and exploitation of opportunities.
Preqin Sustainability clients can now access financial materiality assessments at the fund level. Financial materiality assessments can also be accessed at the company level.
What's in the update?
The financial materiality assessment flags sustainability-related risks for specific industries and regions. The assessment is based on company characteristics with the datapoints categorized using SASB standards.
SASB by industry
This shows the 26 SASB ESG factors that represent universal sustainability risks. If a fund’s portfolio companies operate in an industry associated with sustainability-related risks, a color code is shown against the relevant SASB factor.
Low risk (light pink): a SASB factor is material for less than 1/3 of the underlying portfolio companies in the fund
Medium risk (dark pink): a SASB factor is material for less than 2/3 but more than 1/3 of the underlying portfolio companies in the fund
High risk (red): a SASB factor is material for more than 2/3 of the underlying portfolio companies in the fund
How to access the update:
All Preqin Sustainability clients can access this information by viewing a fund profile's description and clicking on the Sustainability tab. The information will be displayed in the ‘Financial materiality’ section if it is available for the fund you have selected.
Learn how to access financial materiality assessments at the company level.
Find out more about Preqin Sustainability.