ESG Analytics, a provider of environmental, social, and governance (ESG) investment support tools, has launched Aditus, an ESG investment analytics platform for the private equity industry.
The launch of this tool will help to facilitate the implementation, analysis and reporting of responsible investment (RI) practices throughout the private equity investment process.
ESG Analytics launched Aditus during the ESG Analysis and Integration into Private Equity: Challenges, Opportunities and Enhancing Value Creation panel at the 20th Annual Dow Jones Private Equity Analyst Conference in New York.
Awareness around the importance of measuring and monitoring ESG factors is quickly 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 several industry surveys, such as PitchBook’s 2012 Private Equity ESG Survey and Environmental Defense Fund’s 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’ products and services are a powerful means for private equity investors, both Limited and General Partners, to identify ESG-related operational risks and opportunities within their portfolio,” says Rina Kupferschmid-Rojas, founder and chief executive of ESG Analytics. “The launch of our latest platform will help to meet the private equity industry’s need for a uniformed, comprehensive approach to measuring and analysing ESG factors. We are providing a unique platform that raises the awareness and understanding of the principals and benefits of responsible investing.”
ESG Analytics’ has partnered with industry leaders for the development and distribution of Aditus. These partners include REPRISK, a provider of business intelligence on ESG risks, and South Pole Carbon, a specialist in reducing CO2 emissions and developer of climate solutions.
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 over 1,500 risks throughout all sectors.
Key product features include:
• Industry-specific ESG scores for portfolio companies
• Dashboard of material ESG key performance indicators
• 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
