Private Capital Markets
ESG & Sustainability Business Challenges
Private equity, venture capital, and investment firms need to produce accurate and timely annual ESG & sustainability reports and analytics for their funds, which comes with various challenges.
Inaccurate and Time Consuming Reports
Annual ESG & Sustainability reports, frameworks like GRI, SASB, regulatory reports like SFDR/PAI, SEC, responding to LPs (ILPA), Aggregation for GHG (PCAF)
- For impact funds accuracy of ESG & sustainability information is critical to the success
- Report production manual, expensive and with a lot of human errors
- Aggregation of ESG & sustainability metrics from PortCo to fund level is a challenge
Data Collection
Data Collection from PortCos is usually a manual and messy exercise with “Maniac Spreadsheets”
- Metrics for each PortCo can vary based on their industry verticals
- Most PortCos might not have the tools to respond to requests, especially GHG emissions
- Response data is mostly empty or inaccurate, with wild variations
Evolving ESG & Sustainability
If you are starting out, first, you must figure out what metrics you must capture across your portfolio
- Questions, surveys, and regulations are changing from year to year
- Gathering insights from data comparison over the years is challenging
- With changing fund composition rolling up data across a fund accurately at all times is a cumbersome task
Assurance
Auditors need to provide assurance on your ESG & sustainability data
- External auditors request for the provenance and audit logs
- Auditors also require evidence for relevant metrics
- For EU taxonomy, specialists may be involved in curating questions
- Consultants or lawyers might review/approve sustainability data from PortCos
Portco Experience
Your Portcos experience responding to requests
- No tools to capture GHG Scope 1, 2, and Scope 3 data
- Unable to collect & synthesize data from systems like ERP, HR, SCM
- Challenging collecting data from 100s of offices and facilities
- All this needs to happen before they respond to your ESG Survey!
The Solution – pulsESG!
pulsESG™ is the Enterprise Sustainability Platform, purpose-built from the ground up for companies to manage their ESG & sustainability performance.
A streamlined SAAS application for all your ESG & sustainability needs AND your portfolio company's ESG & sustainability needs!
- pulsESG Catalogs are your repository of ESG & sustainability metrics
- Standards based – SASB, GRI, CDP, DJSI, SFDR, TCFD and more!
- Easily create all your business-specific custom metrics, e.g., waste data
- Supports all your industry and vertical-specific, metrics
- Full audit trail for each metric update system or human
- Upload supporting evidence for each metric update
- Manage all metrics by periods – months, quarters, or years
Easy, and simple ESG data collection from PortCos
- Create Data Requests – for your annual, quarterly, monthly data collection
- Do full collection or for subsets of metrics from your firms
- Internal or external auditors can review all the information
- Review the PortCos response and ask for revisions if needed
- Identify validation errors and help capture high quality data
- 1:1 correlation with the ‘Data Collection’ need & challenge
Your PortCos are empowered to respond with accurate data!
- Each PortCo gets its own environment and can manage its own ESG catalogs and respond to you!
- Provide data, clearly identify where data is not available and provide an explanation
- Full access to GHG Scope 1, 2, and 3 calculators
- Integrate to back-end systems such as ERP, HR, and SCM
- Workflow across their facilities and departments
- Monitor progress and gain insights using powerful analytics!
Data Destinations are a single click!
- pulsESG connects to your fund management system and gets fund PortCo composition
- Publish sustainability or regulatory reports with a single click!
- Create LP reports such ILPA or custom
- SFDR PAI reports with a single click that includes all aggregation
- Performance extracts, Due Diligence extracts – one click!
Powerful yet easy to use analytics
- Powerful and valuable insights into your ESG data – across periods, funds, PortCos, benchmarks … and much much more
- No extracts necessary – dynamic dashboard – embedded within the platform!
Goals and progress management
- Set up SMART (Specific, Measurable, Achievable, Relevant, and Time-Bound) goals
- Set and track multi-year Goals linked to specific metrics
- Monitor progress using analytics!
Successful pulsESG Implementation in the Private Equity Market