Alternative investment professionals have a growing need to access sustainability data to achieve better risk-adjusted returns. In partnership with our eFront Insight client community and third-party ESG data providers, we have built a sustainability solution to help private market investors monitor and analyze portfolios and investments through an ESG lens. Managers and investors can now establish a rigid, quantifiable ESG monitoring and reporting framework to compare their ESG credentials against closely aligned peer groups, gaining a better understanding of risk and performance.
Contact us to join our initiative and contribute to change.
Within Frameworks: The Language of Sustainability is Data
Available on demand
Speakers:
- Oliver O'Bryan, ESG Data Specialist, Partners Group
- James Smallwood, Global Head of Content & Client Success for eFront Insight, BlackRock
- Davide Terrani, Client Solutions and Strategy, BlackRock Private Equity Partners
- Ron Potok, Head of Data Science, Clarity AI
- Matt Guiness, VP of Aladdin Product Marketing - Sustainable Investing, BlackRock
Today’s Top ESG Challenges in Alternative Investing
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Accessing sets of high-quality quantifiable ESG private market data is challenging.
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No system brings together financial and non-financial disclosure information into a single platform.
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There is no single ESG framework that fulfills the needs of limited partners, general partners, and other market participants.
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Lack of unified widely-adopted metrics makes gaining a holistic view of your portfolio difficult and resource-intensive.
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Lack of synergy within the industry prevents the creation of meaningful output due to the inability of peer-group comparison through industry benchmarks.
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Making sense of data and acting on risks is impacted by limited actionable intelligence and tech capabilities.
A comprehensive ESG solution for private markets
eFront Insight Sustainability is a by-industry-for-industry solution that provides a quantifiable and consistent ESG monitoring framework to help clients holistically integrate sustainability into their investment processes and meet regulatory and disclosure demands.
To directly address the challenges faced by alternative investment managers, we offer a two-pronged approach utilizing multiple data sources.
| “Outside-In” Externally Identified Risks |
“Inside-Out” Company Disclosed Metrics |
| Within eFront Insight Sustainability, users can access actionable ESG risk metrics and incident data generated by RepRisk, an ESG data science company, at the company, fund and portfolio level. This data empowers investment managers to proactively understand ESG impact on the valuation and performance of their portfolio and manage risks accordingly. eFront Insight Sustainability provides ESG metrics and scores, while each incident is flagged against the UNGC principle violation | eFront Insight Sustainability offers a centralized, out-of-the-box ESG toolkit for fund managers to gather and analyze ESG data from their investments. A universal questionnaire and SASB industry-specific discussion points provide investment managers with the data, first, to establish a structured, quantifiable ESG monitoring and reporting framework, comparing their ESG credentials against closely aligned industry consensus peer benchmarks powered by Clarity AI and then to gain a better understanding of risk and performance. |
How will eFront Insight Sustainability impact your alternative investment data?
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Through combining company disclosed ESG metrics and externally identified ESG incidents and sentiment, eFront Insight Sustainability leaves no stone unturned in identifying and monitoring ESG risks and opportunities across your entire portfolio.
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eFront Insight Sustainability brings together traditional private equity metrics with ESG risks and incidents in a single view, enabling users to understand how ESG impacts the performance of their holdings alongside firmographic asset characteristics.
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Through RepRisk’s daily scraping of external sources, eFront Insight Sustainability will expose the assets that have had risk incidents associated with them within the reporting period. This process enables users to quickly identify any UNGC violation flags and take the necessary actions to effectively handle these events.
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Demonstrate your commitment to greater transparency and standardization by adopting the universal ESG framework, which meets the demands of both direct and indirect investors and is aligned with key recognized frameworks and regulatory requirements (such as SASB, SDG, GRI and SFDR).
Key Product Features
ESG DATA TRANSPARENCY
Every underlying holding is monitored for risk incidents, while aggregated ESG scores enable users to understand performance attribution through an ESG lens.
UNIVERSAL ESG FRAMEWORK
Compare your ESG metrics against a universally applicable set of KPIs mapped with recognized frameworks that meet the demands of both direct and indirect investors.
FUND & PORTFOLIO AGGREGATION
Asset level scores are aggregated to provide both fund and portfolio level scores, allowing full attribution and composition analysis across your funds and investment portfolios.
ESG & FINANCIAL DATA CENTRALIZED IN A SINGLE PLATFORM
Bringing together sustainability metrics with granular performance data at the portfolio company level provides an ESG perspective for risk and performance in private markets.
FUND & PORTFOLIO AGGREGATION
Asset level scores are aggregated to provide both fund and portfolio level scores, allowing full attribution and composition analysis across funds and investment portfolios.
OUT-OF-THE-BOX, INTUITIVE PLATFORM FOR ESG DATA
eFront Insight provides access to ready-to-go data and deal packs, advanced analytics, and pre-built charts, while eFront Insight Sustainability enables users to build and share their own ESG insights into portfolios. The available web-based tools support data collection and reporting processes, including ESG transparency ratings and aggregated metrics.
INDUSTRY BENCHMARKING AND REGULATORY COMPLIANCE
Mapped to SASB, SDG, and the GRI frameworks and enabling the creation of SFDR disclosures, the eFront Insight Sustainability questionnaire can help investors ensure they are prepared to meet evolving regulatory demands. With Clarity AI’s integrated capabilities and market-leading data coverage, GPs can benchmark at the company-, fund-, and portfolio-level.
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