Ever wondered just how responsible you and your portfolios are when it comes to private equity?
Now you can find out.
Private equity managers and institutional investors in Europe have come together to develop portfolio-company-focused due diligence guidance, assessing the environmental, social and governance aspects of holdings.
Published by Invest Europe, the trade body for European private equity, venture capital and investors, the ESG Due Diligence Questionnaire for Private Equity Investors and their Portfolio Companies gives investors a clear framework for assessing ESG factors at the companies they own, or in which they are planning to invest.
The questionnaire covers areas including human rights, labor standards and environmental impact across a company's operations and supply chain. Investors will be able to identify issues that require more detailed technical assessment, and also opportunities to enhance value and mitigate risks following an investment.
“At Invest Europe's Responsible Investment Roundtable, we discussed what we could do to contribute to the tools that are out there for the private equity industry to share best practice for ESG due diligence,” said Marta Jankovic, Amsterdam-based senior sustainability and governance specialist, head of ESG integration alternatives at APG Asset Management and chairwoman of the roundtable.
“We thought it would be good if an industry body sent a signal out that it was willing to create ESG tools,” Ms. Jankovic added. She said this was a joint initiative between the limited partners and general partners participating in the roundtable.
The questionnaire is free to download on Invest Europe’s website.