The investment community plays a pivotal role in the environmental, social, and governance (ESG) world. As the momentum behind impact investing continues to grow, institutional investors are increasingly motivated to assess the ESG footprint of their investment portfolios. However, this task presents significant challenges, as portfolio managers must execute a tedious process of collecting and reviewing an extensive volume of data points across their investment portfolios, which can encompass anywhere from a few dozen to thousands of investment companies. As a result, this manual approach leads to a long and inefficient execution cycle.
At Archer, we are committed to understanding the pain points within the market and developing solutions that effectively address them. We are delighted to announce the launch of Archer ESG Portfolio Management. This cutting-edge solution enables institutional investors to efficiently gather and analyze ESG data across their investment portfolios.
Initially tailored to cater to the needs of the private equity's general partner (GP) - portfolio company structure, this innovative solution can be utilized by a diverse group of institutional investors involved in private and public, debt and equity investments. A wide range of portfolio managers, including asset management companies, venture capital, private equity firms, and commercial lenders, can benefit immensely from implementing Archer ESG Portfolio Management. The versatility of Archer ESG Portfolio Management extends its application even beyond the investment realm, making it suitable for the parent company–subsidiary type of relationship structure.
Archer ESG Management delivers an integrated approach for ESG data collection, aggregation, and analysis across the investment portfolio. The solution’s key features include:
ESG Data Convergence Initiative (EDCI) framework
The Archer ESG Management solution offers a distinct hierarchy for investor portfolio companies and LP & GP relationships. It allows portfolio managers to establish a relevant connection structure with portfolio companies.
Initiated by CalPERS and Carlyle, EDCI represents a set of guiding ESG principles applied by GPs and LPs to collect ESG data across their portfolio companies. The framework is widely used by private equity companies globally. Archer ESG Portfolio Management solution embeds the EDCI framework, allowing portfolio managers to automate the process of collecting ESG data based on EDCI.
At Archer, we acknowledge that every portfolio management company is unique and might want to use its own metrics. Our ESG Portfolio Management solution enables investors to create customizable ESG metrics and collect data based on those tailored metrics.
Portfolio managers have to collect ESG data across a sizable number of portfolio companies. Archer ESG Portfolio Management aggregates data received from their portfolio companies at the portfolio and country/region levels for further analysis.
Archer ESG Portfolio Management provides dashboards and graphical reports that provide valuable information on ESG data collected across geographies, sectors, and the three dimensions of ESG. Portfolio managers can use analytics to track metrics and draw valuable insights into their portfolio ESG performance.
We are excited about the potential for enhanced efficiency and automation that our solution offers to portfolio managers, empowering them to streamline their processes and freeing up valuable time to focus on what truly matters.
If you would like to learn more about Archer ESG Portfolio Management, we invite you to join the upcoming webinar ESG Portfolio Management: Optimizing Opportunities and Performance, on August 15, 2023, hosted by ESG industry leaders Tahmina Day, Global ESG Solutions Lead, Archer; Terry Hill, Partner, BPM and Ben Zhang, Managing Director, BPM.
Click here to register for the webinar.