The PRI has launched a project to develop guidance for Limited Partners (LPs) and General Partners (GPs) on how to report on and monitor the ESG integration practices of GPs during the lifetime of a fund.

The PRI is pleased to announce that ERM has been appointed as the consultant on this project and will be responsible for conducting the research and co-authoring the guidance with the PRI. They will be supported by a global working group of over 40 PRI signatories.

The objectives of the project are:

  • present the value creation case to both LPs and GPs of reporting and monitoring ESG-related practices during the life of a fund;
  • give a range of flexible options relevant to LPs and GPs on how to report and monitor ESG practices and issues that apply to investors at different levels of ESG integration maturity;
  • encourage a more consistent approach from LPs and GPs on ESG-related monitoring and reporting which will lead to a more streamlined approach across the sector.

“ERM is proud to work with the PRI on this project to develop practical guidance for LPs and GPs in order to enhance the effectiveness of their monitoring and reporting of ESG-information during the life of a fund. From our experience working with private equity and other organisations, we know the value that can be achieved through taking a comprehensive approach to integrating ESG factors to deliver improved business performance.”

Keryn James, CEO, ERM.

Fiona Reynolds, managing director, PRI said: “With the start of this project, we begin the final stage in the selection, appointment and monitoring series. When completed, the private equity industry will have a full suite of tools available from the PRI for incorporating ESG considerations into the LP-GP exchange and dialogue.

“The size and diversity represented in the working group is testament to the demand for these tools.

“The PRI PE Advisory Committee selected ERM as our partner for this critical piece of work not only for their in-depth experience of working with LPs and GPs on ESG integration in private equity, but also for their capacity to lead this multi-stakeholder dialogue across the globe”

For more information please contact Natasha Buckley, manager, private equity.