Quantitative Data, Standardized Frameworks, and Value Creation for Impact

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Published: July 29, 2022
Updated: September 9, 2024
Quantitative Data, Standardized Frameworks, and Value Creation for Impact

A partnership between Clarity AI, the award-winning sustainability tech firm, and eFront, the largest alternative investment management platform to bring sustainability reporting capabilities to global private markets.

In an age where climate risk is investment risk—how do you know what’s progress or egress? What’s the expectation from investors, and how do you quantify their mandates? And in your sustainability efforts—whether you’re a general partner (GP), limited partner (LP), or portfolio company (PortCo)—how do you measure impact?

Today, these questions (and more) continue to swirl among the lion’s share of private markets players across the globe. And it’s top-of-mind for their investors, too, as portfolios evolve away from the (once standard) 60/40 split.

Clarity AI’s integrated capabilities in eFront® enable GPs and LPs to generate quantitative sustainability assessments of alternative investment portfolios. Through a simplified workflow, eFront® is encouraging industry participation and help solve the gap of sustainability metrics outside publicly listed companies—fostering an ecosystem of communication across LPs, GPs, and PortCos.

“We are excited to partner with eFront to bring our capabilities to the global private markets,” said Rebeca Minguela, Founder and CEO of Clarity AI. “Our technology allows us to provide sustainability solutions at scale, and our ability to estimate data with proprietary machine learning algorithms sets us apart as a sustainability data provider that can address the needs of the players in the private markets almost immediately.”

LPs opting into the eFront® sustainability service will be able to access and extract Clarity AI ESG data related to their portfolios and utilize that data within their reporting. GPs will also be able to generate analytics and benchmarking at the company-, fund-, and portfolio-level, along key sustainability metrics powered by Clarity AI, such as GHG or total energy consumption.

“Our partnership with Clarity AI will better help clients understand climate-related exposures and opportunities, while also giving them greater transparency with regulators and the end-investor—as sustainability frameworks become more and more standardized,” said Melissa Ferraz, Managing Director and Global Head of eFront® Insight at BlackRock. “We are confident that we are bringing powerful, and user-friendly, sustainability analytics to our clients with Clarity AI’s capabilities integrated into eFront.”

Clarity AI’s market-leading sustainability capabilities are now available for private markets through the eFront® platform, which serves more than 850 alternative investment professionals worldwide including seven of the top-ten LPs and six of the top-ten GPs.

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About Clarity AI

Clarity AI is a sustainability technology platform that uses machine learning and big data to deliver environmental and social insights to investors and organizations. As of March 2022, Clarity AI’s platform analyzes more than 30,000 companies, 280,000 funds, 198 countries and 187 local governments, and delivers data and analytics for investing, corporate research and reporting. Clarity AI has offices in North America, Europe and the Middle East. Clarity AI’s client network manages trillions in assets under management.

About eFront

eFront® is a leading technology platform solution for alternative investment management, covering the needs of alternative investment professionals end-to-end, and used by over 850 clients worldwide across all major alternative asset classes. From fundraising, fund administration and reporting to data services and analytics, the platform provides capabilities to support decision making and investment oversight.

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