ESG

GPs (General Partners) show large variations in their approaches to handling Environmental, Social, and Governance (ESG) considerations. Within our investment strategy, we employ a comprehensive due diligence process focused specifically on sustainable investing and ESG aspects. We seek to ensure that every investments we make and its respective GP meet a baseline of ESG responsibility and expertise that aligns with our requirements. We find that the baseline status on sustainable investing and ESG is already advanced across the opportunity set in which we ultimately invest.

Throughout the due diligence phase, we seek out areas for improvements at the GPs and also reflect ESG considerations through side letter and legal documentation.

We manage the diversity among our invested GPs by utilizing a proprietary rating methodology. This methodology holds GPs accountable and allows for effective comparisons. The rating is established prior to investment and consistently updated through the investment period. In addition to our assessments, we closely monitor our portfolio using reports and information provided by GPs complemented via external sources. This proactive approach ensures that we receive timely information on ESG matters, enabling us to share relevant updates with our investors as needed.

Having long-run effects in mind, we actively participate in industry initiatives such as the ESG Data Convergence Initiative and the Invest Europe ESG Reporting Guidelines Working Group to support the standardization of ESG data collection and reporting. These long-term engagements reflect our commitment to advancing ESG practices within the investment landscape.