Robeco Private Equity
Robeco Private Equity (Robeco PE) considers sustainability factors in the selection, appointment, and monitoring of investment managers. During screening, we evaluate an external manager's approach to
responsible investing and ESG integration, and their willingness to enter into a dialogue with us on this. Before committing to an external manager's PE fund, Robeco PE checks the following aspects of a PE
manager's ESG approach as part of its ESG due diligence (next to the standard investment, legal and fiscal due diligence):
• Does the manager have explicit responsible investment policies?
• Does the manager subscribe to some form of responsible investing framework or set of principles/ practices for responsible business?
• Is there a person, function or committee that is explicitly responsible for ESG?
• Does the manager use internal or external ESG specialists (consultants, research providers, etc.)?
• Are ESG issues integrated into the manager's investment process and how?
• Does the manager have a monitoring system for ESG performance of its portfolio companies?
• What information does the manager monitor in its portfolio companies?
• How does the manager communicate with LPs on its ESG policies, practices and incidents?
• Does the manager publish a separate ESG/sustainability/RI report?
Upon appointment, Robeco Private Equity includes a clause regarding adherence to Robeco's Exclusion Policy in the side letters, asks managers to enter into an ESG engagement process, and to provide
information on their ESG efforts at least annually. In the monitoring phase, Robeco Private Equity focuses on the monitoring and assessment of the ESG
progress of the PE managers, as well as engaging with the managers on how they can improve their ESG performance. For the reporting and assessment part of our process we use the PRI (online) Reporting
and Assessment Tool. Engagement with managers on ESG integration represents the core of Robeco Private Equity's responsible investment approach. We are in active dialogue with the PE fund managers on the relevance
of ESG factors for PE investments and their implementation in their investment process. We started our ESG Engagement Program in 2004 and developed it further over the years. Next to pro-active
engagement we have also introduced a re-active engagement with our managers in 2016. Namely, we also engage with the PE managers on ESG incidents in their portfolio companies. As part of our
monitoring process we track ESG incidents that RepRisk records for the portfolio companies. (RepRisk a newsflow screening tool that is used to identify ESG incidents and other news for companies) When ESG
events indicate a material issue we enter into a dialogue with the affected manager(s). The ESG process is fully integrated within our investment process. Robeco PE has a dedicated
sustainability director who is responsible for the implementation of the ESG Engagement Program and ESG integration in the investment process.