Our GP level data includes the following sustainability metrics:
Sustainability management indicators: Determine the level of transparency across a set of sustainability indicators aligned with leading sustainability frameworks and standards.
SASB risk map: Identify the most material sustainability-related risk factors for a specific GP.
GP regulatory disclosures: Track firm-level adherence to ESG regulatory requirements.
Sustainability affiliations and memberships: Analyze third-party memberships related to funds and evaluate their sustainability commitments.
Sustainability contacts: Access contact details (name, role, email, office location, phone number, and LinkedIn) for dedicated sustainability contacts.
GP management indicators
The management indicators component covers sustainability policies, management practices, and rules of doing business that have been disclosed and updated within the past two years. Institutional investors can use management indicators, in conjunction with the sustainability affiliations and sustainability contacts components, to identify fund managers with a sustainable investment workflow. There are 76 indicators for GPs.
By leveraging established ESG frameworks and standards, Preqin has curated a set of ESG data points, specifically applicable to private markets. Relying on valuable input from our Sustainability Advisory Council, comprised of more than 50 clients who partner in our research and development program, this product was designed to incorporate and build upon existing domain knowledge. A full list of sources we have curated the management indicators from are included in the appendix.
Manager sustainability diligence
To support fund sourcing, fund manager profiles provide manager sustainability diligence, broken down into three categories based on the governance type of each indicator. The categories are manager governance, investment integration, and portfolio management – each of which have their own disclosure rates, further broken down into the environmental, social, and governance pillars. By utilizing these disclosure rates, users can get a snapshot of a fund manager’s transparency in relation to each pillar of sustainability-related practice.
This is calculated by taking all management indicators within each subcategory of governance type and calculating the proportion of indicators that are disclosed within each ESG pillar.
Preqin’s sustainability disclosure rates within each governance type provide an indication of how transparent a firm is in relation to core sustainability facets. Our search functionality enables clients to compare between firms according to a variety of sustainability criteria, including:
A firm’s overall sustainability disclosure rate
Disclosure of specific management indicators
Management indicator governance type (manager, governance, portfolio management, or investment integration)
Sustainability affiliations
Other core filters from the wider Preqin offering include, but are not limited to:
GP regulatory disclosures
GP regulatory disclosures provide an overview of a fund manager’s adherence to ESG regulatory requirements. This dataset currently covers the EU Sustainable Finance Disclosure Regulation (SFDR), which is binding as of 2022, and will be expanded to cover other global regulations as they are introduced. GP regulatory disclosures seamlessly integrate fund sourcing and due diligence with regulatory compliance.
Preqin’s regulatory disclosures track firm-level disclosures mandated by regulatory bodies. Our dataset currently includes the following, collected through the public domain by Preqin’s sustainability research team:
SFDR Article 3: Disclosure of a 'Sustainability Risk Policy' that includes information on the integration of sustainability risk considerations in the firm's investment decision-making process.
SFDR Article 4: Disclosure of a 'Principal Adverse Impacts Statement' (PAI) that includes a due diligence assessment of sustainability impacts. Alternatively, disclosure of the firm's rationale for not publishing it.
SFDR Article 5: Disclosure of remuneration policies that include information on how the firm integrated its consideration for sustainability risks.
We aim to expand the list of disclosures as they are introduced by regulatory bodies.
Sustainability affiliations
To commit to an affiliation, firms need to dedicate time and resources to integrate sustainability into their practices. If you are an institutional investor, the sustainability affiliations component – in conjunction with management indicators and sustainability contacts – enables you to identify fund managers with sustainability-integrated investment workflows. A Net Zero-related affiliation indicates which fund managers are committed to emission reduction targets in line with the Paris Agreement. This information enables you to quickly shortlist the funds which track and actively manage their carbon footprints.
Based on their prevalence in the industry, we amassed an extensive dataset tracking 40+ third-party organizations to which LPs and GPs are affiliated. Preqin’s sustainability research team collects this information from the public domain for both LP and GP sustainability profiles. For each organization we calculate the percentage of the 60k+ LPs and GPs featured on Preqin Pro who are affiliated with it. While conducting this calculation, we consider only firms with at least a single affiliation. The resulting ratio informs our clients about the extent to which the standards promoted by this organization permeate the market. An institutional investor or fund manager’s association with a specific organization can provide further insight into a firm’s sustainable investing objectives, indicating obligations that are perhaps otherwise not publicly disclosed. For a full list of affiliations currently tracked by Preqin please see Appendix.
The sustainability contacts component enables you to directly reach out to key players on the ESG scene, providing a target list of contacts that can be instrumental in your business development. The availability of a sustainability contact is also an indirect indicator of how serious an organization is about the role of sustainability in its investment workflow.
The existence of sustainability teams within fund managers and institutional investor firms is a recent phenomenon. As it becomes more mainstream, we map the presence of sustainable investing capabilities and expertise within organizations. The sustainability contacts component enables you to not only verify if a firm has a dedicated sustainability team, but also access contact details of various team members. This insight enables you to research individuals’ backgrounds and trace their career paths, as well as gain insight into how the team was created and has grown. This is critical information when it comes to evaluating sustainable investing capacity and expertise within an organization.
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