The alternatives industry has an important role to play in helping to tackle the climate crisis and achieve net-zero emissions. The good news is that ESG adoption is increasing.
The industry has come a long way in its understanding of ESG over the years. As of October 2021, we estimate there are $3.10tn of private capital assets managed by firms that are committed to ESG investing. Managers have focused more and more time and money on finding solutions to help them respond to institutional demand for ESG. Indeed, Preqin’s June 2021 survey of alternatives investors found that investor demand is the most prominent reason why fund managers are establishing ESG policies – ahead of political pressure and moral imperatives.
But investors and fund managers still face a major challenge: the lack of high-quality data. That’s why a top priority for Preqin is providing our clients with the clear and transparent ESG information that the market needs, helping to close the gap between ESG investing and the practice of ‘greenwashing.’
Preqin’s ESG transparency metrics aim to help practitioners navigate this problem, but more needs to be done across the board. Using data from Preqin’s ESG Solutions, and with help from our expert industry partners, this report will explore some of the key issues around implementing ESG into investment practices, and explain how regulators are helping the industry to invest for the future of our planet.