Finnish impact data firm Upright has unveiled a new database for the private equity (PE) sector which aims to promote transparency around firms’ sustainability progress. Informed by natural language processing-enabled technologies, it maps science-backed impact quantifications for more than 1,000 PE and venture capital (VC) funds and more than 20,000 portfolio companies globally, collectively representing a “significant portion” of the US$13 trillion PE industry. “It has been thought to be impossible to measure the impact of private equity because unlisted companies disclose little about their sustainability,” said Annu Nieminen, Upright’s Founder and CEO. “The focus of sustainability efforts has been on regulatory ESG disclosures, [but] Upright’s database […] marks a turning point in the PE sector’s sustainability potential. We can have an honest discussion about PE’s real-world impact and provide the data needed to drive meaningful change.” The database will allow investors to benchmark their impact performance against peers, identify areas for improvement in their portfolio management, and evaluate impact claims beyond marketing materials. “PE firms have unique opportunities to shape the global economy through their active investing mode, close relationships with portfolio companies, and longer investment horizons,” said Nieminen. “With PE’s growing influence comes increased responsibility to address global environmental and social challenges.”
