The document outlines the importance of evaluating ESG parameters in investment decision-making, including a structured approach for ESG deal origination and ongoing compliance monitoring. It highlights challenges in ESG data collection, emphasizes the need for customized solutions, and presents various elements involved in effective ESG reporting and analysis. Magistral Consulting offers expertise in investment analytics and consulting services tailored to meet diverse client needs across the financial sector.

1. Evaluating all deals on ESG parameters. Selection framework to
carry weight for ESG
Deal Origination
Valuation exercise to take into account risks associated with non
compliance and benefits accruing due to compliance.
Due Diligence
Continuous monitoring of portfolio to look for triggers
that may lead to ESG framework violation
Portfolio Management
Compliance to standards like GRI, SASB,
TCFD and others
Reporting and Compliance
ESG across the investing value chain
For more details visit: www.magistralconsulting.com

2. ESG Data Challenges and Solutions
RISK
ESG experts’ team
Industry Experts
Data not scalable
Customized Data Requirement
To counter the problems with
ESG data, solutions need to
be customized. Here are the
elements of effective
solutions
Solutions
There are multiple problems in
collecting relevant ESG data for the
investors.
Problems with
ESG data
Voluntary Reporting on the part
of companies and funds
Incomplete Data
Incomparable Formats
Lack of Reliable Sources
Data and Research Experts
AI and Automation
Customized Solution as per the
investment themes of the Asset
Managers
Advantages of outsourcing ESG Data Management
• Cost Reduction
• ESG Experts
• SME Experts
• Investment Experts
For more details visit: www.magistralconsulting.com

3. Reporting
and Impact
Modeling
Alignment with
Investment
Mandate
Data
Collection
ESG Data Collection and Analysis Process
Collection of data from
all Primary and
Secondary Research
sources
• Company
sustainability reports
• Annual reports
• SEC filings
• Secondary Research
• Experts’ interviews
• Investor
presentations
• Third party news
• Relevant databases
• Other paid sources
• Understanding investment
objectives
• Identifying ESG parameters
impacting objectives
• Assigning weights to
parameters
• Finalizing data collection
plan for each parameter
• Scaling and rules for data
calibration
• Entering Data
• Evaluating investments on
ESG parameters
• Relative benchmarking
• Improvement potentials
• Environmental: Resource
Use Emissions,
Environmental
opportunities, Waste and
pollution
• Social: Workforce, Social
Opportunities, Data
Privacy. Product
Responsibility
• Governance: Risk
Responsibility, Shareholder
Rights, CSR
• Excel Models
• ESG reports
• Continuous ESG tracking
• ESG portfolio report
• ESG investment reports
• Automated tools to report
findings for all stakeholder
• ESG Ratings
For more details visit: www.magistralconsulting.com

4. ABOUT US
Magistral is a leading research, analytics, and consulting services provider for Investment Banks, Private
Equity, Venture Capital, Family Offices, and Hedge Funds. It has more than 100 clients across the globe.
If you need any of Magistral’s work samples or need to talk to any of its existing clients and referenced
drop a line at www.magistralconsulting.com/contact
Magistral Consulting has helped multiple funds and companies in outsourcing CIO related activities. It
has service offerings for Private Equity, Venture Capital, Family Offices, Investment Banks, Asset
Managers, Hedge Funds, Financial Consultants, Real Estate, REITs, RE funds, Corporates and Portfolio
companies. Its functional expertise is around Deal origination, Deal Execution, Due Diligence, Financial
Modeling, Portfolio Management and Equity Research
About
the
author
The Author, Prabhash Choudhary is the CEO of
Magistral Consulting and can be reached at
Prabhash.choudhary@magistralconsutling.com
for any queries or business inquiries.