ETFdb Logo
ETFdb Logo
  • ETF Database
  • Channels
    • Active ETF
    • Alternatives
    • Beyond Basic Beta
    • China Insights
    • Climate Insights
    • Commodities
    • Core Strategies
    • Crypto
    • Disruptive Technology
    • Dividend
    • Dual Impact
    • Emerging Markets
    • Energy Infrastructure
    • ESG
    • ETF Building Blocks
    • ETF Education
    • ETF Strategist
    • Fixed Income
    • Free Cash Flow
    • Future ETFs
    • Global Diversification
    • Gold & Silver Investing
    • Innovative ETFs
    • Institutional Income Strategies
    • Leveraged & Inverse
    • Managed Futures
    • Market Insights
    • Megatrends
    • Modern Alpha
    • Multi-Asset
    • Night Effect
    • Portfolio Strategies
    • Retirement Income
    • Richard Bernstein Advisors
    • Tax Efficient Income
    • Thematic Investing
    • Volatility Resource
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Sector Tracker Tool
    • ETF Database Categories
    • Head-To-Head ETF Comparison Tool
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
    • Indexes
    • Mutual Fund To ETF Converter
    • ETF Data for Journalists
    • ETF Nerds
  • Research
    • First Bitcoin ETF
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Index Education
    • Index Insights
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Multimedia
    • ETF 360 Video Series
    • ETF Trends on Videos
    • ETF Trends on Podcasts
    • ETF Prime Podcast
  • Company
    • About Us
    • Swag Store
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. ESG Channel
  2. Private Equity Could Be Moving the ESG Reporting Needle
ESG Channel
Share

Private Equity Could Be Moving the ESG Reporting Needle

Karrie GordonJan 28, 2022
2022-01-28

Over 70 private equity firms have signed an agreement to collect and report data on emissions, workplace fatalities, and gender diversity on the boards of companies contained in their portfolios. This move could help push regulatory talks forward in Washington, reports Bloomberg.

The initial group committing to data gathering was created by the California Public Employees’ Retirement System and Carlyle Group Inc. and has since seen firms such as Oaktree Capital Management, Apollo Global Management, and Ares Management Corp. join. The private equity industry is notorious for cost-cutting and adding debt to companies, and the move could bring transparency and a provision of proof that these companies can be profitable while minding their sustainability and social costs.

“We want our LPs to hold us accountable for our ESG outcomes, and having a common set of metrics facilitates that,” said Priya Prasad Bowe, head of ESG at Oaktree.

The coalition has agreed to standardize how ESG reporting is done, something that lacks any type of guidance or regulation from Washington for now. Included with the 70 private equity firms that have joined since fall of last year are almost 40 institutional investors as well, bringing assets of the group to $8.7 trillion.

With such a sizable portion of private equity, it should provide more clout in Washington regarding ESG reporting and standardization with regulations. Last March saw the acting SEC Commission Chair Allison Herren Lee asking for input from the industry as to the disclosures private companies were making regarding their climate practices and data.

Members of the group will be collecting various ESG metrics that have been agreed upon, such as certain types of emissions, and then a third party will collate the data and create benchmarks from it. They have also created an investor template for requesting the information from asset managers, with Bloomberg LP being a provider of ESG data. If people want any changes to be made to the ESG metrics, a majority vote would be required.

“We would hope other investors take the cue from this exercise, and are asking the important questions in their own way,” said Dan Rueven, principal of Kenneret Group.

State Street Global Advisors offers a number of ESG-focused funds with a variety of strategies and exposures. Funds include the newly launched SPDR S&P SmallCap 600 ESG ETF (ESIX ), the SPDR Bloomberg SASB Developed Markets Ex US ESG Select ETF (RDMX ), and the SPDR Bloomberg SASB Emerging Markets ESG Select ETF (REMG ).

For more news, information, and strategy, visit the ESG Channel.

Loading Articles...
Help & Info
  • Contact Us
Tools
  • ETF Screener
  • ETF Analyzer
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Performance Visualizer
  • ETF Database Model Portfolios
  • ETF Database Realtime Ratings
  • ETF Database Pro
More Tools
  • ETF Launch Center
  • Financial Advisor & RIA Center
  • ETF Database RSS Feed
Explore ETFs
  • ETF News
  • ETF Picks of the Month
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Best ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Legal
  • Terms of Use and Privacy Policy
  • © 2023 VettaFi LLC. All rights reserved.
Follow ETF Database
Follow ETF Database

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X