ERM launches first-of-its-kind ESG ratings platform for private markets


ERM has launched ESG Fusion – an AI-enabled, on-demand, custom rating platform designed to provide reliable, consistent and comprehensive Environmental, Social and Governance (ESG) data and insights to investors focused on privately-owned companies.

Private market investors and alternatives managers are currently underserved by ESG rating services. ESG Fusion addresses this gap and offers a faster turnaround time compared to other offerings, with analysis delivered within just 48 hours. This means private market investors can now make better investment decisions faster, quantifying ESG risks and identifying new opportunities for value creation.

ESG Fusion is primarily designed for use by private credit funds and hedge funds. It can also be used for equity transactions as an early stage screening ESG due diligence tool to supplement and inform the focus of a more conventional in-depth ESG due diligence.

The platform combines ERM’s deep domain expertise in ESG with near real-time data analytics capabilities. It is powered by intelligent web-crawlers, APIs from an ecosystem of data providers, and alternate data sources to provide detailed ESG data and content, which is reviewed and curated by ERM experts. Investors can use ESG Fusion to perform ESG due diligence, engage with portfolio companies to measure performance and progress, as well as compare companies’ ESG performance within and across industries.

“Investors are increasingly seeking actionable insights into ESG performance of companies in which they invest to help private credit and equity clients achieve their sustainability objectives. ESG Fusion provides a unique client experience in data-driven support for investment decisions” said Gerard Spans, Chief Information/Innovation Officer.

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