Ask Corp-O-Rate: How do you handle incomplete supplier ESG data?
We're conducting due diligence on potential portfolio companies in emerging markets, and I'm hitting a wall with incomplete supplier ESG data. Some companies can provide Scope 1 and 2 emissions, but their Scope 3 data is patchy at best-particularly around supply chain labor practices and environmental impact. I refuse to accept "we're working on it" as an answer, but I also can't let data gaps paralyze our investment pipeline. How are you handling this? Do you use proxy data, third-party assessments, or build improvement timelines into your investment terms? What's worked when you need to move forward despite imperfect information while maintaining rigorous impact standards?