Define the ESG metrics that are most meaningful to your firm
- Collect data that maps to your firm's disclosure requirements
- Adapt to different frameworks as they evolve
Identifying the right ESG metrics to collect can be a complex task
To define which metrics to collect, you should consider the following areas:
Align with ESG policy and industry exposure
Consider your key stakeholders and the issues most relevant to them. This can help you align your goals internally and select metrics that best speak to these goals and your industry exposure
Incorporate portfolio companies
Work closely with portfolio companies to identify ESG metrics that are material to both parties. Create internal alignment on data and ensure consistency in reporting. Identify opportunities to mitigate risks and drive value for portfolio companies
Use industry standards and frameworks
Leverage accepted standards and frameworks, such as the Global Reporting Initiative (GRI) and the ESG Data Convergence Initiative, to guide ESG metric selection process.
Small but meaningful
Start with a small set of ESG metrics that are easily and accurately measurable. The EDCI is becoming widely accepted by LPs and GPs alike.
How does Dasseti ESG work?
![Leaf icon](https://www.dasseti.com/hubfs/Leaf%20icon.png)
Step 1 - Define
![1-Oct-24-2023-12-47-25-1184-PM](https://www.dasseti.com/hubfs/1-Oct-24-2023-12-47-25-1184-PM.png)
Step 1 - Define
Define the metrics you need to:
- Meet regulatory requirements
- Map data to different frameworks
- Benchmark performance against industry peers
- Measure progress
![Leaf icon](https://www.dasseti.com/hubfs/Leaf%20icon.png)
Step 2 - Collect
![Questionnaire module](https://www.dasseti.com/hubfs/Untitled%20design%20-%202023-10-24T135527.968.png)
Step 2 - Collect
Dasseti is the private equity sector's leading ESG data collection platform for:
- Secure, one to one data collection direct from portfolio companies and funds
- Distribute data collection link to any number of entities in seconds
- Secure, easy to use response portal allows users to copy from previous responses via Smart Response feature.
![Leaf icon](https://www.dasseti.com/hubfs/Leaf%20icon.png)
Step 3 - Enrich and Validate
![Enrich and validate](https://www.dasseti.com/hubfs/2-Oct-23-2023-02-17-58-0591-PM.png)
Step 3 - Enrich and Validate
Enrich and validate your proprietary ESG data.
- EDCI validation
- Compare progress over specific time periods
- Benchmark against industry peers
- Aggregate data sets for easier comparison
- Standardize data to make querying easier
![Leaf icon](https://www.dasseti.com/hubfs/Leaf%20icon.png)
Step 4 - Report
![ESG Reporting](https://www.dasseti.com/hubfs/Untitled%20design%20-%202023-10-24T135712.063.png)
Step 4 - Report
High quality customizable outputs for client reporting and to assist with regulatory disclosures:
- Fill data voids with publicly available proxy data
- Dynamic dashboards
- Client-specific reporting
- Year on year progress tracking
- Industry specific reporting
![1-Oct-24-2023-12-47-25-1184-PM](https://www.dasseti.com/hubfs/1-Oct-24-2023-12-47-25-1184-PM.png)
Step 1 - Define
Define the metrics you need to:
- Meet regulatory requirements
- Map data to different frameworks
- Benchmark performance against industry peers
- Measure progress
![Questionnaire module](https://www.dasseti.com/hubfs/Untitled%20design%20-%202023-10-24T135527.968.png)
Step 2 - Collect
Dasseti is the private equity sector's leading ESG data collection platform for:
- Secure, one to one data collection direct from portfolio companies and funds
- Distribute data collection link to any number of entities in seconds
- Secure, easy to use response portal allows users to copy from previous responses via Smart Response feature.
![Enrich and validate](https://www.dasseti.com/hubfs/2-Oct-23-2023-02-17-58-0591-PM.png)
Step 3 - Enrich and Validate
Enrich and validate your proprietary ESG data.
- EDCI validation
- Compare progress over specific time periods
- Benchmark against industry peers
- Aggregate data sets for easier comparison
- Standardize data to make querying easier
![ESG Reporting](https://www.dasseti.com/hubfs/Untitled%20design%20-%202023-10-24T135712.063.png)
Step 4 - Report
High quality customizable outputs for client reporting and to assist with regulatory disclosures:
- Fill data voids with publicly available proxy data
- Dynamic dashboards
- Client-specific reporting
- Year on year progress tracking
- Industry specific reporting
Commonly collected metrics include:
-
Environmental Metrics
-
Social Metrics
-
Governance Metrics
Environmental Metrics
To measure a firm's environmental progress, you can collect various metrics including:
- Energy usage
- Water usage
- Waste generation
- Carbon emissions
- Sustainable procurement
- Product development
- Biodiversity conservation
- Renewable energy adoption
Social Metrics
Measuring a firm's social progress requires the collection of relevant metrics that can provide insights into the company's diversity, equity, and inclusion (DEI) efforts, as well as its impact on stakeholders and society as a whole:
- Representation
- Retention
- Promotions
- Leadership Pipeline
- Employment Pipeline
- Pay Equity
- Employee Resource Group (ERG) Membership
- Participation Rates in Mentoring and Sponsorship Programs
- Participation Rates in Diversity and Inclusion Training Programs
- Number of Lives Impacted
- Economic Empowerment
- Community Engagement
Governance Metrics
Evidence of good governance practices is an indication of a sound approach to risk management and high levels of accountability.
Key metrics include:
- Structure and oversight
- Code and values
- Transparency and reporting
- Cyber risk and systems
- Long-term perspective
Conducting a materiality assessment allows you to
- Identify and prioritize ESG issues that are the most critical.
- Look at a variety of factors through two lenses: the potential impact on the business and the priorities of the stakeholders.
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Research
-
Review
-
Mapping
-
Survey
-
Compile and rank
-
Prioritize
-
Collaborate
Research your industry peers and competitors to benchmark material ESG issues in your disclosures and reporting.
Review sustainability reporting frameworks like SASB and GRI to find suitable standards.
Conduct stakeholder mapping to identify key stakeholder groups like investors, employees, customers, regulators.
Survey or interview stakeholders on their top ESG priorities and concerns related to the company.
Compile results into a materiality matrix, ranking stakeholder priorities.
Identify issues falling into the "high priority" quadrant. Those are likely material ESG factors warranting metrics and disclosure.
Prioritize material factors based on relevance to financial performance, stakeholder concerns, potential risks/opportunities, and ability to influence. Develop a final list of 8-12 material ESG factors to guide strategy and measurement efforts. Re-evaluate periodically as priorities shift.