ESG

Three pensions that collectively manage assets of more than $600bn and actively invest in venture and buyout funds are calling on US state and federal policymakers to protect 'the freedom to invest responsibly' as the anti-ESG movement gains momentum.

There is some good news for investors worried about the drive by Republican state legislatures to divest or prohibit investments in funds with environmental and sustainability goals. Some public pensions – the deep pockets that have fueled the rise of ESG funds – are pushing back against lawmakers who want to tie their hands.

Representatives of AP4, CalPERS, the European Investment Fund, IH International, StepStone Group and Railpen share their insights for GPs with funds focused on sustainability.

LPs including AP6, Hamilton Lane and Harvard Management Company told the Principles for Responsible Investment that they are looking more carefully at how general partners manage ESG risks internally and within their portfolio companies.

Bond is believed to be the first major US venture firm to sign the UN’s Principles of Responsible Investment.

Some things are certain in this world; one is that the urgent need for standardized ESG data must be part of any serious conversation about sustainability in private markets.

Invest Europe has launched its ESG reporting guidelines as the industry calls for more focus on data analysis and materiality.

Company founders are keen to engage on social issues, such as hiring and retaining more women and people of color, say panelists at PEI's Responsible Investment Forum.

ESG and impact investing organizations are taking note as America’s fourth biggest pension system acts against the movement.

The VC and growth firm has established 10 sustainability goals, inspired by the UN SDGs, and in December published its first annual report on its progress against these.