Provide an example per asset class of your benchmarks, objectives, incentives/controls and reporting requirements that would typically be included in your managers’ appointment.
For each manager we calculate an ESG score using a proprietary methodology. The manager's score is then compared with other managers in our ESG program.
Provide additional information relevant to your organisation`s appointment processes of external managers.
In the appointment process Robeco Private Equity strives to get the following clauses to be included in the side letters to the Limited Partnership Agreements:
- restricted activities (in line with the Robeco Exclusion Policy)
- integration of ESG factors in the investment process by the PE managers
- reporting on ESG activities and performance on an annual basis.
- reporting on ESG incidents in portfolio companies
More specifically, in the side letters we ask PE managers to incorporate Robeco’s investment restrictions, to implement ESG criteria in their investment process, encourage their portfolio companies to adhere to ESG standards and principles (notably the UN Global Compact Principles) and to report to us on their ESG activities annually on the basis of a format provided by us.