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Technology & Data

Preqin Launches ESG Fund Performance Benchmarks

Alternative assets and insights provider Preqin has unveiled 200 sustainability fund performance benchmarks, which will look at ESG, impact, climate and Sustainable Finance Disclosure Regulation-labelled funds. The offering came in response to the lack of standardised and comparable ESG fund performance data, which Preqin said has contributed to an increase in anti-ESG sentiment and criticism. Access to these tools is a means of championing transparency in markets where ESG data is scarce and difficult to collate, helping to establish more widely accepted standards and alleviate concerns about the industry’s differing applications and opinions of ESG, Preqin added. Clients will be able to deep-dive into over 200 ESG fund performance benchmarks, covering more than 1,000 ESG funds, with coverage encompassing private equity, venture capital, real estate, private debt, natural resources and infrastructure. The labels include: ESG integration, impact, climate, SFDR Article 8, SFDR Article 9, Sustainable Development Goals (SDG) and Sharia-compliant. With improved means of assessing performance, investors will be able to benchmark quality funds and fund managers as part of their sustainability strategy, Preqin said. Conversely, fund managers will be able to benchmark ESG fund performance and articulate their performance outlook and ESG credentials back to investors. “With this latest launch, we hope to give practitioners another tool to help them understand whether ESG funds outperform the market or their non-ESG peers,” said Fabien Chen, Global Head of Benchmarks, at Preqin. “As we expand and innovate on our benchmark offerings, we will bring further transparency and objectivity to enhance decision-making and accountability in private markets.”

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