Abris Capital Launches New ESG Scoring System
Central European private equity investor Abris Capital Partners has developed a proprietary ESG scoring application technology. The software, created over the past 6 months, allows the firm to track more than 500 criteria relevant to environmental, social and governance (ESG) factors across each of its portfolio companies.
Paweł Gierynski, Managing Partner at Abris Capital, said: “Institutions globally are placing ever-growing emphasis on the importance of sustainable finance and the inclusion of ESG factors as key investment benchmarks - both for risk mitigation and value creation. As this trend continues, it has become imperative for Abris to address ESG issues up front, and to lead the drive towards greater sustainability, rather than acting as ‘followers’ in this area.
The ESG Scoring Application software has been tailor-made by a third-party technology firm working to specific criteria provided by Abris, in a process that has taken around 6 months. The IT tool supports investment decision making and supervision of ESG integration at Abris and its portfolio companies, and encompasses more than 500 inputs, looking at specific risks within each company. Each of these 500 inputs is assessed on an annual basis, generating quantitative reports that can then be used to track progress at each company.
The software comprises three main modules: a diagnostic module, a monitoring module and an analytical module. These platforms together allow Abris to assess the true impact of risks and their probability, helping the firm not only to mitigate risks but also to boost value creation. Overall, the Scoring Application enables the practical application of Abris’s ESG policy framework and is the most important tool Abris uses for value enhancement. The platform is part of Abris’s ESG Universe 2020 – a strategy that seeks to transform its approach to ESG and sustainable investment.
Robert Sroka, Abris ESG Director, added: “With our ESG Scoring Application, we are seeking to go above and beyond what investors require of private equity firms in this area, driving a step change in the way GPs manage ESG within their portfolios and radically improving industry best practice.”
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