1. FrontESG
MANAGING ESG INFORMATION
eFront’s FrontESG solution provides flexible ESG information
management to both LPs and GPs, who are becoming
more systematic in how they identify and manage ESG risks
and opportunities. FrontESG was designed to answer the
growing investor and fund manager commitment to integrate
ESG information into investment processes, which impacts
their reputation and long term investment performance.
2. Increased demand
for ESG reporting
There is growing investor commit-
ment to integrating ESG information
into investment processes. There
are increasing regulatory and public
pressures for investors to demonstrate
that they are responsibly addressing
ESG issues. Furthermore, today, inves-
tors have a better understanding of
how ESG issues like climate change,
water scarcity, and employee satisfac-
tion can impact long term investment
performance. Consequently, inves-
tors and fund managers are becoming
more systematic in how they identify,
measure and manage ESG risks and
opportunities.
Yet the integration of ESG has become
a burden for both LPs and GPs who are
struggling with how to collect, interpret
and communicate ESG information in
a meaningful way, as well as discern
material from immaterial information.
High volumes of information are being
requested and there are doubts about
how the information is used. There is no
global industry-wide approach for ESG
reporting, nor are there agreed defini-
tions as to what constitutes relevant
ESG information for shareholders and
for underlying assets.
The solution
eFront’s FrontESG solution provides
flexible ESG information management
to both LPs and GPs. FrontESG has
two components:
1. Collect, manage and
communicate ESG information
Flexible information requests: LPs
and GPs can create customized
information requests, allowing them
to adapt requests according to their
own ESG policies. Investors can build
their requests by choosing indicators
from a predefined library or by creating
their own indicators. After creating the
information request, investors can
invite their investees to FrontESG to
share their information.
Secure information management and
efficient responses: ESG information is
stored in a central and secure repos-
itory. Additionally, GPs and portfolio
companies can easily identify overlaps
in information requests and direct
information to the appropriate investor.
These features enable respondents to
efficiently submit ESG information to
multiple investors simultaneously.
FrontESG
2. Report and analyze what
matters to your stakeholders
and to your investees
Guidance on industry best practices
through indicator library: LPs and
GPs have access to a library of
indicators that will evolve over time
as more investors use the platform
and industry best practices progress.
The current library is aligned with
both the PRI and The Sustainability
Accounting Standards Board (SASB),
one of eFront’s ESG partners. Use of
this library also encourages LPs and
GPs to use a harmonized language to
communicate ESG information.
Analyze standard ESG information:
LPs and GPs can analyze indicators
from the predefined library allowing
them to quickly identify key ESG risks
and opportunities. FrontESG is also
fully integrated with eFront’s advanced
reporting technologies allowing LPs
and GPs can build customized
reports or modify standard reports
that analyze ESG information.
Example portfolio overview
3. FrontESG
The LP experience
LPs want better visibility into the
ESG developments in their portfolio
companies. They also need to
establish that GPs are acting in a
manner consistent with the ESG
approach agreed upon in the fund
terms. FrontESG enables LPs to
automate the process of inviting GPs
to FrontESG, easily create custom-
ized information requests, manage
the status of requests, collect ESG
information and analyze ESG perfor-
mance on their direct and indirect
investments.
The GP experience
Increasingly LPs are requesting GPs
to demonstrate their commitment to
ESG integration and report on ESG
developments in their portfolios. In
response, a growing number of GPs
are analyzing ESG performance and
are reporting this information to LPs.
GPs can use FrontESG to:
• Design a customized information
request to portfolio companies
• Leverage the FrontESG indicator
library of industry standards and best
practices
• Automate data collection and
manage the status of requests
• Store information about their ESG
policies and processes
• Create detailed analyses of the
collected ESG data
Key benefits for GPs
XX Efficiently communicate ESG
developments
XX Improved ability to monitor
ESG risks and opportunities
XX Guidance on industry best
practice
XX Increased investor confidence
Key benefits for LPs
XX Automated GP enrollment
XX Efficient information
collection and analysis
XX Improved visibility into
ESG risks and opportunities
across portfolio
XX Guidance on industry
best practice
XX Improved understanding of
GPs and underlying companies
Choose a standalone or
integrated ESG solution
FrontESG can be directly embedded
in FrontInvest or FrontGP solutions.
This customized integration is an
appealing choice for LPs or GPs
seeking to quickly extend their current
implementation to include ESG infor-
mation management.
FrontESG is also available as a cloud
solution for clients who want to quickly
deploy a dedicated ESG portal.
This out-of-the-box solution can be
integrated with any portfolio analysis
and accounting market solution.
eFront’s ESG partners
Our partnerships ensure that
FrontESG is always up to date and
fulfills your ESG integration needs:
• The Sustainability Accounting
Standards Board (SASB) will enhance
our ESG indicator library with the
most important KPIs to measure for
every industry
• South Pole will help investors
implement climate change related
strategies
• ExFi Partners and the Waterman
Group will provide ESG monitoring
and reporting services
FrontESG was designed in partner-
ship with SWEN Capital Partners,
who provided business expertise in
the domain of responsible invest-
ment in order to provide a solution
that is efficient either as a standalone
offering, or integrated into an existing
eFront product suite.
eFront’s ESG partners
