Environmental, Social and Governance

Environmental, social and governance issues present long-term opportunities and challenges for the private equity industry, and LPs and GPs alike are increasingly elevating and dedicating resources to ESG. ILPA is working to align both LPs and GPs through resources that will move the industry forward. ILPA’s ESG priorities include:

  • LP Education: Providing LPs and other private markets participants with educational materials, resources, and toolkits to navigate the ESG learning curve and position them to further integrate ESG considerations into their investment programs
  • Standards and Best Practices: Making a positive contribution to industry efforts to standardize reporting and create best practices that make exchanging and reporting on ESG considerations consistent, simpler, and resource-effective
  • Policy Engagement: Regular engagement with regulators and policymakers to ensure ESG disclosure standards are calibrated to private markets and supportive of limited partner needs

This handbook, written in collaboration with Bain & Company, is meant to help LPs better understand the different approaches to decarbonsiation leveraged by the private markets community today and the existing tools available to help them carry out their plans effectively.

These resources, developed in collaboration with Malk Partners, were written for LPs seeking to learn more about important and trending topics across the ESG landscape. They provide background information, an overview of key considerations and resources and a sense for where the industry may be heading in this rapidly developing area of practice.

The ESG Data Convergence Initiative (EDCI) is an industry-wide effort to streamline how environmental, social and governance (ESG) data is collected and reported.

ILPA's ESG Assessment Framework helps LPs evaluate and benchmark GP responses to due diligence efforts, inform goal-setting conversations with GPs and measure ESG integration progress over time.

ILPA’s DDQ, designed to ease the administrative burden placed on LPs and GPs by standardizing the most frequent and important due diligence questions, features an ESG section aligned with  Principles for Responsible Investment’s LP Responsible Investment DDQ, as well as an enhanced Diversity, Equity and Inclusion questionnaire.

ILPA's ESG Roadmap and Resources page connects LPs with a directory of helpful ESG-related resources tagged to specific actions institutional investors may take to better integrate ESG considerations into their investment programs.

Suite of classes designed for private equity professionals who are currently looking into integrating ESG into their program and those who would benefit from an understanding of the importance of ESG.

In a joint survey with Bain & Company, ILPA heard from more than 100 limited partner organizations about how they’re approaching ESG integration - learn more in our recently released report.

On June 11, 2021, ILPA submitted an official response to the SEC’s Acting Chair Allison Herren Lee’s request for public input on climate-related financial disclosures.

Visit ILPA Connect to discuss actionable ESG in a member-only forum.