Private equity and venture capital firms are committed responsible investors and focussed on measuring, managing and responding to the Environmental, Social and Governance (ESG) risks and opportunities attached to their portfolio companies.
Alongside increased consideration of ESG issues at firm-level, this reflects the momentum behind Responsible Investment and sustainability amongst PE/VC fund managers, investors and wider stakeholders alike.
Sustainability issues, especially climate and other environmental considerations, have become deeply embedded in global political discourse. This has spurred policymakers and regulators to design and implement a range sustainability-related rules that affect businesses across the UK financial services industry, private equity and venture capital firms included.
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The BVCA is actively encouraging the PE and VC industry to sign up to initiatives such as iCI, IIGCC and Ceres. These focus on collecting data, agreeing common methodologies and sharing best practices to make net zero a reality. These networks also offer pathways for firms seeking to make net zero commitment and join groups such as the Net Zero Asset Managers Initiative, which is a partner in the UN Race to Zero Campaign. Further detail on the role of private equity and venture capital can be found here.
An in-depth introduction to Responsible Investment, why it matters, and insights on how to integrate ESG considerations into investment strategies can be found in the Responsible Investment Toolkit, the latest iteration of the BVCA’s Responsible Investment Guides. This provides practical advice throughout the investment life-cycle, from due diligence through to exit, as well as at the house level and includes case studies, illustrating responsible investment in action.
The BVCA has a Responsible Investment e-Learning Course, formed of a number of modules relating to each stage of the investment process. Further information is available here.
The BVCA’s policy work in this area spans EU and UK legal and regulatory developments. We are working with our members and other associations to track and respond to developments in UK sustainability regulation, such as the introduction of reporting requirements based on the Recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) under the UK Government’s TCFD Roadmap, and new economy-wide Sustainability Disclosure Requirements in the recently published Roadmap to Sustainable Investing. We are also closely following developments EU sustainability regulation with Invest Europe and others to contribute to the development of EU rules.
The BVCA actively encourages the PE/VC fund industry to continue deepening its engagement on net zero and broader climate issues under initiatives such as iCI, IIGCC and Ceres, which focus on collecting data, agreeing common methodologies and sharing best practices to make net zero a reality. Further detail is included in our position statement.
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This online guide is an introduction to what responsible investment is, why it matters, and provides insights on how to integrate environment, social and governance (ESG) considerations into investment strategies. Practical advice is provided throughout the investment life-cycle, from due diligence through to exit, as well as at the firm/house level.
Now in its second year, ‘Excellence in ESG’ celebrates firms from across the private capital ecosystem that have made an outstanding commitment to ESG principles. Outstanding contributions to ESG and impact investment from across private equity and venture capital were recognised at the BVCA Summit on 7 October.
FOR FURTHER INFORMATION PLEASE CONTACT THE BVCA
+44 (0)20 7492 0400