Finance, Banking, Private Equity, and Venture Capital
We support financial firms such as private equity, venture capital, and umbrella/holding companies with their ESG and compliance requirements.
About financial services companies
Financial companies, banks, private equity firms, and venture capital organizations all conduct operations in the financial services sector.
Private equity organizations directly invest in companies that are not publicly traded, often with the goal of earning returns that are better than what can be achieved in public equity markets such as the stock exchange.
Venture capital firms provide funding to young startup businesses exhibiting long-term growth potential.
Many financial services companies are invested in more than one organization, and thus have a portfolio of investments.
The challenge
ESG and financial companies are becoming increasingly interlinked due to increasing government legislation and industry regulation in terms of ESG requirements.
Banks, investors, holding companies, private equity firms, and venture capital organizations wanting to engage in responsible investing are realizing the benefits of having access to information on a company’s performance in terms of non-financial topics such as:
- Governance
- Social issues
- Environmentally sustainable practices
Investors are seeing the link between access to ESG disclosures to give context to a company’s performance, and its potential future success trajectory.
In addition, risks are easily identifiable through the ESG lens which provides a broader view than a pure focus on financial disclosures, in-turn allowing for more informed decision-making.
Getting an informed picture of each company’s ESG performance within an investment portfolio can be a challenge however, particularly when there is no mandate for private companies to track and report on their ESG performance.
The solution
Use IsoMetrix software to collect ESG data from individual companies on one integrated and unified software platform. Data collection categories are customizable, although typically may include metrics such as GHG emissions, renewable energy usage, and company diversity amongst others.
✅ Individual company ESG data available
✅ Entire portfolio ESG data available
✅ Intuitive dashboards present real-time information
✅ Built-in calculation engine assists with GHG analysis
✅ GRI, TCFD, SASB, and WEF Common ESG Metrics standards all available as templates
✅ Generate stakeholder reports in seconds
Collected data is collected, stored and displayed on IsoMetrix’s ESG software platform. Live system dashboards enable financial companies to view individual and rolled-up company data, as well as access real-time key metrics, with the click of a mouse.
The outcome
Using IsoMetrix software, private equity firms, venture capital organizations, umbrella/holding companies, and other financial institutions can track the ESG performance of the various subsidiaries in their portfolios at an individual level as well as on an overall group level, resulting in:
✅ Improved private equity ESG data accuracy throughout the entire management process
✅ Increased financial services ESG visibility across the portfolio in terms of comparing and ranking individual company ESG performance
✅ The ability to identify areas of weakness, inefficiency, and potential risks amongst portfolio companies and subsidiary financial investments
✅ Rapid situational analysis utilizing intuitive system dashboards
✅ Boosted efficiencies due to automated notifications and workflow reminders
✅ Time saved via streamlined, detailed, and accurate reporting to internal and external portfolio stakeholders
Key ESG metrics
The IsoMetrix Lumina ESG solution caters specifically for some of the key metrics frequently used by financial institutions to measure their portfolio ESG performance, including:
GHG emissions
Scope 1, Scope 2, and Scope 3 emissions data
Renewable energy usage
What percentage of energy use originates from green energy sources?
Workforce metrics
Company diversity. What percentage are women? What percentage are from under-represented population groups?
Employee engagement
Employee surveys and responses
Work-related injuries
Number of incidents, injuries, fatalities, days lost due to injury, and long-term injury frequency rate
Net new hires and attrition rates
Number of new hires and employees who have left the company
Principles for Responsible Investment (UNPRI or PRI)
What is UNPRI?
UNPRI is a United Nations-supported international network of investors working to promote the incorporation of ESG principles into responsible investment decision-making.
Its six aspirational principles offer a framework of possible actions in incorporating ESG aspects into investment and ownership decisions.
What are the six UNPRI principles?
Principle 1: We will incorporate ESG issues into investment analysis and decision-making processes.
Principle 2: We will be active owners and incorporate ESG issues into our ownership policies and practices.
Principle 3: We will seek appropriate disclosure on ESG issues by the entities in which we invest.
Principle 4: We will promote acceptance and implementation of the Principles within the investment industry.
Principle 5: We will work together to enhance our effectiveness in implementing the Principles.
Principle 6: We will each report on our activities and progress towards implementing the Principles.
Why should I be aware of the (UN)PRI initiative?
The (UN)PRI initiative is global, backed by the United Nations, and indicative of the growing influence of environmental, social and corporate governance within the financial industry.
Thousands of signatories from leading financial companies around the world have signed up to adhere to the Principles, demonstrating that there is significant appetite for ethical and responsible investing.
It also shows how sustainability in investment decision-making and ownership practices is gathering traction within the financial industry.
How does UNPRI relate to IsoMetrix?
IsoMetrix enables financial and investment companies to embrace the UNPRI initiative via our ESG software.
By enabling the tracking, management, and reporting of ESG data, our software facilitates the incorporation of ESG principles into responsible investment decision-making.