A guide to effective ESG management in private equity
Responsible investing (RI) is increasingly accepted by the private equity industry as integral to good business practice and an essential part of the value creation process. It’s no longer simply a nice-to-have practice, which GPs can choose to adopt, but an expectation.
Are you an LP looking for more information about your GP’s ESG practices and performance? This book tells you what practical questions to ask and how to interpret the information they give you. If you are a GP, you can use the book in the same way with your portfolio company management teams, and to help you decide where next to focus your time and attention as you develop your RI strategy.
- PRI’s Fiona Reynolds and Natasha Buckley look at current trends, new initiatives in 2016, and emerging best practice in responsible investing (RI), and consider what the next five years might yield.
- Case study: Allan Holt and Jackie Roberts of The Carlyle Group discuss how private equity is embracing sustainability and offer a valuable insight into how Carlyle works with its portfolio companies to create value through RI.
- LP Perspective: David Russell writes about USS responsible investment processes and how it has improved the quality of discussions with GPs on ESG issues.
- Christopher Hardman of Hermes discusses how to effectively address ESG risks and opportunities in co-investments.
- Q&A interviews with KKR, Actis and CDC.
Who should buy this book:
- Fund Managers
- ESG Professionals
- Institutional Investors
- Fund of Funds Managers
- Asset Managers
- Investment Advisers
- Placement Agents
- Family Offices
Editor: Vincent Neate is a chartered accountant and former Chairman of the Invest Europe Professional Standards Committee. He worked at KPMG for 20 years, making partnership in 2006. For ten years he was a leading member of KPMG’s Private Equity Group and in 2010 was given the responsibility of leading KPMG’s Sustainability Service team, which incorporates responsible investment.
- Fiona Reynolds and Natasha Buckley, Principles for Responsible Investment
- Allan M. Holt and Jackie Roberts, The Carlyle Group
- Jérôme Tagger
- Eric-Jan Vink, PGGM
- Maaike van der Schoot, AlpInvest Partners
- David Russell, USS
- Christopher Hardman, Hermes GPE
- Charlotte Wales, Mark Ellis and Jeremy Smith, 4C Associates
- James Holley and James Bone, KPMG
- Jeremy Elmore, Travers Smith LLP
- Paula Espana, Baxon Solutions
Figures and tables vii
About the editor ix
By Vincent Neate
SECTION 1: Best practice and thought leadership
1 Current trends, new initiatives and emerging best practice in responsible investment
By Fiona Reynolds and Natasha Buckley, Principles for Responsible Investment
2 Case study: When, not if: How private equity is embracing sustainability
By Allan M. Holt and Jackie Roberts, The Carlyle Group
3 Comparing ESG in public and private markets
By Jérôme Tagger
4 From ESG risks as buzzwords to tangible implementation
By Eric-Jan Vink, PGGM
5 How GPs can integrate ESG
By Maaike van der Schoot, AlpInvest Partners
6 LP Perspective: Universities Superannuation Scheme as a responsible investor
By David Russell, USS
7 Leveraging co-investing partnerships to effectively
By Christopher Hardman, Hermes GPE
8 ESG — Procurement implications
By Charlotte Wales, Mark Ellis and Jeremy Smith, 4C Associates
9 Effective ESG due diligence at investment and exit
By James Holley and James Bone, KPMG
10 ESG in the context of fund documentation
By Jeremy Elmore, Travers Smith LLP
SECTION 2: Q&As
11 Digital solutions for a leaner integrated ESG reporting process
By Paula Espana, Baxon Solutions
12 Q&A Discussion — Actis
By Shami Nissan, Head of Responsible Investment at Actis
13 Q&A Discussion — CDC
By Dr Samantha Lacey, Manager of Environmental and Social Responsibility at CDC
14 Q&A Discussion — KKR
By Elizabeth Seeger, Director of Public Affairs at KKR