MV Credit “Sweep makes it easy to answer questions from our investors about financed emissions, carbon intensity, and data quality.”

Background:

MV Credit is an independently managed pan-European private credit specialist founded in 2000 with offices in London, Paris and Luxembourg. The firm has over 20 years of investment experience across multiple credit cycles and an investment philosophy built on two core principles: rigorous credit analysis and active portfolio management. 

Challenge:

With a portfolio of more than 200 companies, invested through two main strategies (Direct Lending and Broadly Syndicated Loans), operating at varying levels of data maturity, MV Credit identified the need to measure financed emissions effectively to align with sustainability goals and to better measure and report on climate risks. 

MV Credit emphasises that it has a dual focus, both on regulatory requirements and investors’ needs, as well as its own aspirations to be more responsible and invest in sustainable companies. 

Previously, the firm’s internal and manual data collection process had been decentralised and relied on Excel, and had proved increasingly cumbersome. 

Depending on the strategy, the carbon data was either collected directly from the portfolio companies, as part of an annual ESG questionnaire, or collected from available information in reporting or public sources. 

The lack of clear process and methodology was time-consuming for the investment teams, and the risk of error and inconsistency was high. 

MV Credit had tried other carbon management platforms but found that these platforms’ did not meet expectations of efficiency, and more importantly, the team describes the accuracy of the data as ‘debatable’. The firm’s goal was to transition to a more sustainable and efficient carbon management process.

Solution:

Emilie Huyghues Despointes, MV Credit’s ESG Officer, highlights that the software platform met her key need of streamlining data management and carbon literacy across the portfolio. Sweep's features, including tailor-made surveys and comprehensive dashboards, fulfilled MV Credit’s reporting requirements. 

Emilie emphasizes the platform's role in supporting MV Credit's needs as the company fine-tunes its methodology for measuring its carbon footprint. 

By uploading portfolio data into Sweep, the firm obtained initial footprint estimates efficiently, gaining quick insights based on activity and revenue. 

The intuitive interface, supported by responsive team assistance, facilitated a seamless transition from manual processes to automated, data-driven carbon management.

“Sweep School for Finance offers practical resources on the different regulations and reporting frameworks, breaking down how they impact asset managers. Even if these are elements we were already aware of, a timely reminder is always helpful. The guidance on how to navigate Sweep for Finance [Sweep's finance module] is clear and intuitive,” says Emilie Huyghues Despointes, ESG Officer, MV Credit.

MV Credit has been an early adopter of Sweep School for Finance, a training center which enables platform users to take the lead in their firm’s decarbonization journey. The team has used it to navigate regulatory frameworks and stay informed about evolving ESG regulations and reporting frameworks, setting a benchmark for ESG excellence in private credit.

In the future, the firm plans to explore Sweep's ESG module, extending its focus beyond carbon accounting to encompass broader environmental, social, and governance considerations.