Investment firms and portfolio companies alike are facing hurdles when it comes to ESG data.
Businesses are scrambling to meet ever-changing standards respond to due diligence questionnaires and other time-sensitive matters. Yet, too many are struggling to access the granular data underpinning all of these activities, leading to uncertainty, inaccuracy and lack of impact.
KEY ESG has taken the temperature of the industry to understand where the problems - and solutions - may lie.
Surveying over 100 industry participants, including both GPs and portfolio companies, we learnt what the main issues are when it comes to ESG data gathering, the appetite for improved data access and where the areas for greatest improvement may lie.
of portfolio companies assessed claimed to be unsure how to report on ESG data
Many firms take up to 12 weeks to collect ESG data which can lead to missing reporting deadlines, stalling or failing deals at the point of sale
of fund managers find extensive esg questions from LPs detract from ESG improvement
of managers want to make sure to report on material factors and do this as part of their process
What’s really important to us is making sure that we can actually understand the impact that a company has based on its strategy, its industry, its location.
You can think about the broad brush of ESG performance, but every company is individually positioned to have their own impact.
Pollen Street Capital