Extantia streamlines ESG reporting with Apiday and becomes an Article 9 Fund

Challenges

Manual data collection with spreadsheets

As an early-stage firm, Extantia had been collecting portfolio ESG data manually. However, increasing investments meant Extantia needed a new solution to replace survey tools and spreadsheets. When Tess Dury joined Extantia as Head of ESG, one of her first objectives was to find a software to streamline reporting.

[.exergue]“Looking ahead, there was going to be a lot of data collection as our portfolio grew and we targeted more institutional investors. Knowing our data requirements were only going to increase, I knew we needed a software that would bring all our data together in one place.”[.exergue]

SFDR reporting was on the horizon

Monitoring its portfolio’s ESG KPIs is key to Extantia’s EPIC methodology, and the firm was targeting SFDR Article 9 classification. However, Tess knew the uncertainties of a new regulation meant success wasn’t guaranteed.

[.exergue]“We have a a well-thought-out ESG methodology that we’ve integrated into our investment process; however, it was our first time with SFDR reporting so I didn’t know what was coming or how it was going to go.”[.exergue]

Early-stage portfolio companies needed flexibility & support

Extantia invests in early-stage startups, so ESG reporting is often new for them. While Tess works closely with each of their companies, Extantia’s growing portfolio meant she needed a scalable way to provide extra support. Additionally, Tess knew it would be a challenge for their companies to meet SFDR requirements designed for large organisations.

[.exergue]“It was really a priority to make sure our data collection was done in a way that wasn‘t just sustainable for me, but also for our portfolio companies.”[.exergue]

Solution

Streamlined ESG data collection to meet regulatory and LP requests

When Tess learned about Apiday, she knew she’d found a strategic partner that shared Extantia’s values and would support its ESG performance.

[.exergue]“I looked at a lot of software options; with Apiday, it was our alignment of values I was sold on. Apiday’s ethos is to help young companies get started on their sustainability journey, which is one of my top goals at Extantia.”[.exergue]

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Since Extantia’s early-stage portfolio companies weren’t going to to check every ESG box that a larger company could, flexible reporting capability was a top priority.

[.exergue]“I needed a software that would give me the flexibility to be creative and adapt some things to make our use cases fit, not one I couldn’t change or work with because ‘this is how the regulation wants it, so it’s set in stone.’ Apiday offers this flexibility.”[.exergue]

Tess noted that Apiday’s user-friendly interface was a big plus for encouraging portfolio companies to complete their reporting on time.

[.exergue]“It seems superficial, but I think Apiday’s clean, attractive UX design helps portfolio companies, especially younger ones, prioritise the questionnaires when they have so much on their plate. A lot of softwares are data-heavy and technical, which can scare people off.”[.exergue]

Apiday’s client service is incredible. They’re always there and constantly looking for ways to solve the challenges I face in my role.

Results

96% campaign response rate and Article 9 classification

Extantia’s SFDR reporting campaign was a success and the firm reached its goal of Article 9 classification for its Flagship fund. With a 96% average response rate, Apiday helped Tess spend less time chasing companies’ data and more time focused on Extantia’s overall ESG strategy. Extantia also welcomed new institutional investors thanks to its rigorous reporting.

[.exergue]“Having the data in one place, viewing different companies and data points at the click of a button, and being able to export the raw data in a single file saves me time every time I go into our ESG data and when I‘m writing SFDR reports. It also saves time for the portcos doing everything in one place.“[.exergue]

A go-to ESG resource for early-stage portfolio companies

Tess leverages the expertise of Apiday’s ESG team to complement her own extensive experience, working with Apiday to strengthen Extantia’s questionnaires and improve data collection.

[.exergue]“I’m the only ESG person at Extantia and with Apiday, I feel like I have an ESG counterpart. It has really felt like a collaboration and there’s a lot of knowledge sharing, which I really appreciate.”[.exergue]

Tess has also provided Apiday with feedback on how it could become even better for investor reporting; she enjoys participating in beta testing for new features and having the opportunity to help shape the platform.

[.exergue]“It's great to have a software that actually values input - any feedback I've given has been acted on really quickly.”[.exergue]

Next, Tess is planning to use Apiday for EU Taxonomy reporting, consolidating LP reporting, and completing Extantia’s impact report. She’s also turning her attention to how Extantia can improve its ESG reporting next year to better support its companies and fulfil its mission of catalysing the transition to a sustainable economy.

[.exergue]“We're already working on how we can make our reporting process even better; there's a lot of tweaking and reflecting on what went well and what could be improved. I do this together with Apiday, which is incredibly helpful!“[.exergue]