The purpose of these industry-first benchmarks is to give clients the ability to evaluate the performance of environmental, social, and governance (ESG) funds in the larger context of the private market.

Preqin's most recent product tackles the serious deficiency of comparable and standardized ESG fund performance data, which has lately led to an increase in criticism and attitude against ESG. Preqin has created benchmarks, such as SFDR, Impact, and Climate funds, in response to assist standardize performance analysis across the ESG spectrum.

As a leader in the alternative markets space, Preqin offers extensive data, tools, and insights. The organization is renowned for its comprehensive data analysis skills, including a broad range of private market asset classes, including infrastructure, natural resources, private debt, real estate, and venture capital.

Investment professionals can compare the performance of ESG-labeled funds with that of non-ESG and other ESG funds by conducting in-depth analysis using the ESG fund performance benchmarks. More than 1000 ESG funds and more than 200 distinct ESG fund performance benchmarks are included in this comprehensive coverage, which spans many categories such as ESG Integration, Impact, Climate, and SFDR Articles.

These standards not only improve the capacity to measure ESG funds but also assist investors and fund managers in credibly communicating their ESG credentials and performance expectations. Additionally, they provide advisers with up-to-date ESG market knowledge so they can effectively advise clients about emerging possibilities and obstacles in the market.

Third-party acclaimed as an industry leader, Preqin offers more than 100,000 modifiable alternative benchmarks and upholds data accuracy with a committed research team and diverse data gathering channels. The Freedom of Information Act, open filings, and direct donations from fund managers are some of these avenues.

Jaclyn Bouchard, EVP and Head of ESG Solutions & Corporate Responsibility at Preqin, stated: "At Preqin, our goal is to enable anybody who makes investments in, allocates funds to, or provides advice on ESG in Alternatives. Our objective is to use data through our benchmark offering in order to enhance transparency about ESG fund performance and create additional avenues for capital to flow into sustainable investments.

"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, SVP and Head of Benchmarks at Preqin. We will provide more openness and objectivity to improve decision-making and accountability in the private markets as we grow and innovate on our benchmark services.