ERM and the Principles for Responsible Investment (PRI), the world’s leading proponent of responsible investment, have published guidance on ESG monitoring, reporting and dialogue in private equity. Launched at in June 2018, the guidance marks the culmination of a four-year project by PRI to support industry-consistent approaches to incorporating responsible investment considerations across the three stages of fund due diligence, commitment and monitoring.

PRI appointed ERM to conduct research and help develop a framework for ESG disclosure during the lifetime of the private equity fund. Over 70 practitioners contributed to the guidance through interviews, consultation and through a dedicated PRI signatory working group representing 39 limited partner and general partner organizations. Following the release of the document ERM and PRI co-hosted a number of client events across the globe to promote the guidance and good practice.

It has been our pleasure to partner with the PRI and the private equity industry to develop this guidance. The guidance outlines the underlying business case, provides a framework for a more consistent and streamlined approach to dialogue and disclosures between limited partners and general partners, and includes examples and case studies to support implementation. It is our hope that this guidance will help drive the monitoring and reporting agenda forward and, in doing so, deliver not only improved ESG performance, but also protection and enhancement of the value of underlying investments.

Keryn James - 

Group Chief Executive of ERM:

Download the full report on ESG monitoring, reporting and dialogue in private equity