Services

For many fund managers, ESG data collection started as an afterthought rather than a structured operational process. How ESG data is collected is often a clear indicator of how seriously a fund approaches ESG. And under the Sustainable Finance Disclosure Regulation (SFDR), it is no longer a nice-to-have. In this article, Permian’s ESG Director Agata Bremer outlines the typical stages of ESG data maturity, the practical challenges funds face at each step, and what a more sustainable set-up looks like. "For many in the alternative investment industry, ESG reporting started as an afterthought: a spreadsheet here, an email there, a template dropped into SharePoint the week before an LP request landed. That approach worked when ESG was a nice-to-have. Under SFDR, it no longer does. The margin for error is much smaller, and manual processes break down quickly", says Agata. The four stages of ESG data maturity Most fund managers fall somewhere along a spectrum from fully manual to fully integrated, according to Agata. Understanding where you are positioned matters, because the risks and costs of staying put differ significantly at each stage. Stage 1: Spreadsheets and email Excel trackers, Google Sheets, and ESG data collected via email from portfolio companies. This is where most funds start. The setup is simple and flexible, but manual entry increases errors, audit trails are weak, and tracing data back to source quickly becomes painful. Stage 2: Standardised templates in cloud storage Structured questionnaires stored in SharePoint or OneDrive improve consistency and version control. Internal coordination improves, but the process remains manual. Each reporting cycle requires consolidation, follow-ups, and significant hands-on effort, which limits scalability. Stage 3: ESG software platforms Dedicated ESG tools centralise data collection, automate aggregation, and create an audit trail. For many mid-size PE and VC funds with SFDR Article 8 obligations, this is a logical next step. The limitation is that platforms only work well if roles, timing, and data ownership are already clearly defined. Stage 4: Integrated ESG data infrastructure ESG data collection is embedded into the broader fund administration and portfolio monitoring setup. Reporting is largely automated, and regulatory defensibility is stronger. This stage requires more upfront investment but delivers the highest level of control and efficiency. This is where we see large PE firms and multi-fund managers heading, but it requires mature internal processes and meaningful investment before the benefits land. Where problems usually arise According to Agata, ESG reporting issues are rarely caused by technology. “The real problems are almost always about process and ownership,” she says. Common failure points include collecting data only once a year under time pressure, unclear responsibility for chasing and validating data, and expanding reporting scope without a clear data structure to support it. A realistic way to improve Funds don’t need fully integrated infrastructure immediately. What matters is sequencing. “Start by defining exactly which ESG metrics are required and why. Then standardise how those metrics are collected, even if that still happens in spreadsheets. Only once the data flow is stable does it make sense to introduce software or broader system integration,” Agata explains. “The tool matters less than the discipline behind it,” she concludes. “A simple, well-run process will always outperform a sophisticated system that’s poorly implemented.” Need support? At Permian, we support alternative investment fund managers in building ESG data processes that stand up to SFDR requirements and scale with portfolio complexity. Get in touch to discuss how your current ESG data setup can be strengthened and scaled.

As regulatory pressure increases and non-financial risks become critical, fund managers face higher expectations on governance and resilience. Erik Elkan, Risk Manager at Permian in Sweden, discusses the changing role of risk and how Permian in Sweden supports managers through this shift. Erik, you work with risk management for Permian in Sweden. Can you tell us a bit more about your area? At Permian, we work with Swedish Alternative Investment Fund Managers (AIFMs) that have outsourced their risk management function to us. Our specialist team covers all risk requirements under laws such as AIFMD, AIFMR, and relevant local regulation, acting as designated risk managers. We work across different asset classes and fund structures, providing both strategic guidance and regular oversight. What are the main risk-related challenges fund managers face today? Fund managers operate in an environment where risks are more diverse and fast-moving than ever. Cybersecurity and third-party dependencies remain critical, while ESG and climate-related expectations are rapidly intensifying. At the same time, new frameworks such as the Digital Operational Resilience Act (DORA) and upcoming AI Act are reshaping operational risk requirements. How do your risk management services support clients? We help fund managers stay ahead by continuously updating risk frameworks, integrating risk awareness and operational resilience into their systems, and ensuring that both governance and reporting withstand regulatory scrutiny. Permian offers a complete, ready-to-implement risk management function that integrates directly into a fund manager’s governance framework. We follow an annual risk management plan, complemented by ad-hoc assessments as needed, to support regulatory compliance and operational resilience. Our services include risk policies and procedures reviews, regulatory monitoring, risk assessments for funds and manager, and stress testing, as well as regular board reporting. Our approach combines tailored models across key risk areas with structured reporting to senior management, making risk management efficient, transparent, and aligned with supervisory expectations. Why do fund managers choose Permian as their risk partner? Our clients partner with Permian for access to an established framework, specialised tools, and a multidisciplinary risk team that can scale with their business. This allows fund managers to focus on investment performance while maintaining strong regulatory control. Looking ahead, how do you see the risk landscape evolving? Technology such as AI, data analytics, and automation will increasingly shape how risks are identified and managed. Non-financial risks and geopolitical uncertainty affecting market risk are moving to the forefront alongside tighter regulatory expectations. In this environment, fund managers need a trusted, long-term risk partner who understands the full scope of risk management. At Permian, we are preparing for this shift by developing scalable, technology-supported risk frameworks grounded in regulatory expertise and backed by professionals with deep insight into both regulation and business reality. With a fully outsourced function, we act as a trusted professional with a clear understanding of the evolving risk landscape. Read more about our Risk Management Services here.