Integrating ESG in Private Equity

  • Publisher UN Principles for Responsible Investment
  • Publication date April 2014
  • Type Reports
  • Industry Finance
  • Category SRI/Sustainable Finance
  • Discipline Finance
  • Language English
  • Link PRI_IntegratingESGinprivateequity_digital
  • Free/Pay for content Free

This document provides practical guidance on how GPs can develop a framework for the integration of ESG factors within their organisation and investment cycle and points to industry resources and case studies. GPs are encouraged to use the practices and examples presented here as a starting point and adapt them to their organisations and investment styles. PRI GP signatories can use this resource to help implement the types of practices that are consistent with the PRI Reporting Framework.

LPs can also use this guide to understand the different ESG integration practice being implemented in the market, which will in turn facilitate a more informed discussion with their GPs during both fund selection and monitoring.

A supplement of case studies has also been made available, which present more details on the practices described.

The selected case studies cover a range of geographies, investment strategies and GP sizes, and also highlight practices from GPs which are at different stages of ESG integration.

Appendices include (A) an overview of the various industry tools publicly available to help GPs with integration of ESG factors, and (B) resources for further reading.

Over 50 GPs and LPs across the globe were interviewed during the development of this guide and the guidance points presented are reflective of current practice. All quotes measure ESG practices that are highlighted throughout the document have been lifted from these interviews. Please see Appendix D for the list of participating GPs and LPs as well as an explanatory note on the interview selection process.