Greater transparency offered for ESG alternative funds
Preqin's new ESG fund performance benchmarks address the lack of standardized data in alternative assets, offering over 200 benchmarks covering 1,000 ESG funds. With labels like ESG integration and impact, these benchmarks span asset classes such as private equity and real estate, promoting transparency in ESG investing. They aim to empower investors and advisors to make informed decisions and comply with tightening regulations. Preqin's initiative responds to criticism of opaque ESG practices, potentially increasing trust and capital flow into sustainable investments. Challenges include ensuring data accuracy and encouraging widespread adoption of the benchmarks. Overall, these benchmarks mark a significant step towards enhancing transparency and credibility in ESG investing within the alternative assets market.
