PitchBook, the premier data provider for the private and public equity markets, recently announced the integration of new ESG data and insights to help clients identify opportunities, mitigate risk, and understand complex environmental, social and governance (ESG) strategies. Although ESG risk factors are an increasingly vital component of industry, company, or transaction due diligence, available ESG data has historically been difficult to compile and even more difficult to interpret given varying definitions and methodologies. More than ever, investors need consistent and comparable ESG tools to identify and understand material ESG risks facing their portfolio companies. PitchBook’s new sustainability insights, enabled by data from industry-leading provider Morningstar Sustainalytics, offer comparable materiality-driven ESG Risk Ratings on more than 13,000 global public companies. Clients can integrate Sustainalytics’ ESG Risk Ratings seamlessly into their existing workflows within the PitchBook Platform. In addition, the ESG Risk Ratings offer the transparency and depth of data needed to tailor insights to a wide array of investing strategies. LPs and GPs will now be able to view the contributing ESG factors that matter most to them with more than 70 underlying company-level datapoints, including peer and industry analysis, contextual information on risks, and performance over time.
“Between a rising emphasis on sustainable investing across the globe and increasing pressures on fund managers from their LPs to provide more transparency on the ESG performance of their investments, we’re seeing greater demand for quality ESG data with apples-to-apples metrics that enable deep comparative analysis,” said Tom Juarez, Product Manager at PitchBook. “With the addition of ESG data to our already comprehensive private and public market datasets, PitchBook continues to prove itself as the premier tool for PE and VC firms to better understand a company’s risk profile.”
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“Morningstar Sustainalytics is delighted to provide our ESG research and ratings to PitchBook’s clients,” said Krishanti Daryanani, Senior Product Manager at Sustainalytics. “Our industry-leading data can fulfill the growing demand from both public and private investors seeking to integrate ESG risk information into their investment decision-making and reporting processes. We look forward to expanding our partnership with PitchBook.”
Sustainalytics’ ESG Risk Ratings and sustainability insights build on PitchBook’s ESG research and annual sustainable investment survey from the PitchBook Institutional Research Group. Survey results and new research indicate approaches to environmental, social, and governance and impact investing span a spectrum within both PE and VC, further underlining the need for comprehensive and customizable ESG risk assessment tools.
Source: PitchBook