PRACTICE NOTES
This Practice Note addresses the United Nations-supported Principles for Responsible Investment and considers sector guidance and recommended practical actions for private equity houses to embed environmental, social and governance (ESG) considerations within private equity vehicles and their portfolio businesses.
Overview of tools and resources
Numerous industry and sector-focused organisations (including development finance institutions (DFIs) and non-governmental organisations (NGOs)) provide publicly available tools and resources to assist private equity firms with integrating ESG factors into their investment decisions and operations.
The principal bodies and their tools and resources include:
Principles for Responsible Investment (PRI): Supplies guides and case studies on ESG integration. (Resource/tool: PRI Data Portal)
Sustainability Accounting Standards Board (SASB): Provides sector-specific ESG standards for financial materiality. (Resource/tool: SASB Materiality Finder)
Global Reporting Initiative (GRI): Sets out a framework for sustainability reporting aligned to global ESG factors.
Financial Services