Investment and research data provider MSCI today announced the launch of MSCI Private Company Data Connect, a new platform aimed at collecting and communicating sustainability and climate data from private companies to investors and general partner lenders.
According to Eric Moen, head of ESG at MSCI, the launch of the new solution comes amid “an increase in global demand from regulators and clients for more reporting and data on the overall sustainability of GPs’ investments,” with the platform aimed at providing investors with insights into sustainability practices at private companies similar to those used to evaluate public companies.
Moen added:
“As companies’ climate and sustainability considerations are increasingly used in capital allocation, lending and other decision-making processes, investors need an efficient and effective way to share and analyze this critical data.”
The new solution allows companies to report their data to investors through a secure digital hub, with the ability to approve or decline data requests from GPs and lenders directly on the platform, as well as enabling companies to proactively search for and provide data to institutions and market participants operating in the hub.
The platform leverages the model developed by the ESG Integrated Disclosure Project (ESG IDP), a tool that aims to provide a standard format for ESG disclosures for private markets, founded by partners including Apollo Global Management and Oak Hill Advisors. The tool also provides users with access to an AI-powered carbon measurement and reporting tool provided by Climate Management and Accounting Platform (CMAP) provider Persefoni.
Michael Kashani, Managing Director, Head of ESG Credit at Apollo and Inaugural Chair of the ESG IDP Executive Committee, said:
“By working with MSCI and Persefoni to support the establishment of a platform that leverages IDP ESG, we are able to better respond to the unique challenges and opportunities of private markets. Increasing standardization and promoting transparency on material ESG factors reinforces our focus on creating value and meeting stakeholder needs.”
Kentaro Kawamori, CEO and co-founder of Persefoni, added:
This collaboration targets a crucial area in current corporate sustainability efforts – bridging the gap in reporting carbon emissions for public and private companies. This initiative represents a material advance towards increasing transparency in private assets, a sector where data accessibility has traditionally been a challenge.”
