Measuring ESG and carbon performance across your portfolio | Guide
Greenstone has published a guide on 'Measuring ESG and carbon performance across your portfolio'. This guide aims to act as an advisory tool for Private Equity (PE) firms that are looking at measuring and reporting Environmental, Social, and Governance (ESG) and greenhouse gas (GHG) emissions across their portfolio.
A Guide for Private Equity firms
Across the investment community, interest in Environmental, Social, and Governance (ESG) performance has soared since the launch of the UNPRI (Principles for Responsible Investments) in 2006. Integrating ESG factors into investment decisions and portfolio management strategies is increasingly becoming the norm and investors are seeking to better understand a company’s long-term value by looking at ESG information.
However, this trend in responsible investment and ESG reporting is presenting investors with many challenges when it comes to gathering, maintaining, and analysing ESG data. Gaining access to accurate, credible, and consistent ESG data and supporting information is difficult.
An added challenge in the implementation of an investor’s ESG strategy is the calculation, management, and reporting of greenhouse gas (GHG), or carbon, emissions across a portfolio. There is a growing requirement for investors to address the carbon impact of their value chain (Scope 3) to support their decarbonisation strategies.
In this guide, Greenstone provides information on:
- Why ESG data matters to private equity
- Why investors are seeking ESG software to manage portfolio data
- The rise in collecting GHG emissions across an investment portfolio
- How to collect data for Scope 3 Category 15 (Investments)
- Four things to consider when starting the investment-specific method of data collection
- Science-based targets for PE firms
- Greenstone and portfolio GHG emissions management
Greenstone’s Investor ESG software
Greenstone launched its Investor ESG software solution, InvestorPortal, in late 2019. Since then, it has received an exceptional amount of market interest and is currently used by Private Equity firms all over the world with a collective total of over $400bn AUM.
InvestorPortal is a purpose-built responsible investing solution that provides centralised analysis of ESG data at portfolio, fund, and portfolio company level. As well as simplifying the collection, management, and analysis of standard and proprietary ESG data and documents, InvestorPortal enables location-based GHG emissions calculation, customised scoring and ratings, and portfolio engagement.