How to invest responsibly

ESG Due Diligence for Private Equity GPs and their Portfolio Companies

Invest Europe is committed to supporting its members integrate responsible investing practices into their business and investment processes.

The new Invest Europe “How to Invest Responsibly - A Guide to ESG Due Diligence for Private Equity GPs and their Portfolio Companies” provides a summary of emerging good practices available to LPs, GPs and portfolio company management teams to support them identify and address material ESG risks and opportunities during the pre-investment and ownership phases.

What is inside?

  1. Pre-investment: best practices that a GP can emulate in its ESG screening and due diligence processes (Section 1)
  2. Post-transaction: steps a GP can take to incorporate ESG into its ownership practices and engagement with company management (Section 2)
  3. DDQ: a comprehensive list of ESG questions covering common themes across the ESG agenda (Section 3)

This members-only guide, prepared in cooperation with the Invest Europe Responsible Investment Roundtable, aims to serve as a useful tool for those members starting to implement an ESG policy and those aiming to improve their existing processes.

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Guide to ESG Due Diligence for Private Equity GPs and their Portfolio Companies

20 March 2019, Invest Europe

This new Guide includes a summary of emerging good practices to support GPs identify and address material ESG risks and opportunities prior to investment and during the ownership period, as well as a comprehensive ESG DDQ.

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Virtual Roundtable: ESG Is No Longer Optional. What Every Private Equity Manager Should Know

Responsible investment (or ESG) is becoming an essential part of doing business. Private equity managers must consider a range of issues, from the diversity of their teams to the carbon emissions of their portfolio, or risk losing the confidence of investors or access to deals. This trend will only grow.

The challenge today is to formalise ESG policies to meet these higher standards. In June 2019, Invest Europe’s webinar, organised in collaboration with Navatar, brought together industry experts discussing how GPs should present their ESG framework to investors and what to consider during pre-investment due diligence, portfolio monitoring, and exit.

  • How an ESG strategy can make or break a deal
  • What LPs want to see in a GP’s policies and practices
  • How a GP can bring their ESG DDQ to the next level
  • Automation, plastics and other emerging ESG risks

The webinar recording is now available here.

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