Preqin launches ESG fund benchmarks

Preqin has announced the launch of its ESG fund performance benchmarks allowing investors to benchmark ESG fund performance against private markets.

Thew new benchmarks, utilizing ESG fund performance benchmarks, mean clients can analyse the performance of ESG-labelled funds with other ESG or non-ESG funds, and analyse over 200 ESG fund performance benchmarks, covering more than 1000 ESG funds, including SFDR funds.

The coverage includes ESG fund labels across the main private market asset classes (private equity, venture capital, real estate, private debt, natural resources and infrastructure). The labels are: ESG integration, Impact, Climate, SFDR Article 8, SFDR Article 9, Sustainable Development Goals (SDG) and Sharia Compliant.

Fabien Chen, SVP, Head of Benchmarks, at Preqin, said, “With this latest launch, we hope to give practitioners another tool to help them to understand whether ESG funds outperform the market or their non-ESG peers. As we expand and innovate on our benchmark offerings, we will bring further transparency and objectivity to enhance decision making and accountability in the private markets.”