ESG Analytics, a provider of environmental, social and governance (ESG) investment support tools, has launched an ESG investment analytics platform that it says is the private equity industry’s first comprehensive investment decision support tool.
Aditus will help firms implement, analyze and report on responsible investment (RI) practices throughout the private equity investment process, ESG Analytics says.
The Aditus assessment tool measures 127 key performance indicators (KPI) using 2,542 industry specific weightings, across 10 industries and 42 sectors, allowing investors to measure more than 1,500 risks throughout all sectors. Key product features include:
- Industry-specific ESG scores for portfolio companies.
- Dashboard of material ESG KPIs.
- Public-to-private ESG score comparisons, which enable portfolio company benchmarking.
- Graded assessments of fund managers’ commitment to responsible investing and portfolio companies’ ESG performance.
- Fund- and company-level CO2 emissions calculations and reputational risk management.
The company says awareness around the importance of measuring and monitoring ESG factors is gaining momentum within the private equity industry. Yet, despite this increased awareness, investors continue to face barriers that challenge the implementation of ESG initiatives.
According to PitchBook’s 2012 Private Equity ESG Survey and Malk Sustainabilty Partners’ ESG In Private Equity – 2013 Study, the most common barrier for investors is the lack of effective and meaningful ESG metrics, particularly those that can be applied across disparate portfolio companies.
ESG Analytics’ latest platform helps meet the private equity industry’s need for a uniformed, comprehensive approach to measuring and analyzing ESG factors, says Rina Kupferschmid-Rojas, founder and CEO of ESG Analytics.
ESG Analytics’ development and distribution partners for Aditus include Reprisk, a provider of business intelligence on ESG risks, and South Pole Carbon, which specializes in reducing CO2 emissions.