In the selection process, we interview and assess the resources available for ESG. This includes policy documentation, human resources and practical examples. We study sample reports, if available, and other ESG research material. The main goal is to understand how ESG supports the investment process in each case. We engage in development issues and explain what we expect from our managers. This part of the process is similar for PE and LE.
The appointment process is straight forward in LE, where we mainly agree on the frequency and delivery of ESG reports and proxy voting activity results. In PE, we also agree on a side letter where the GP acknowledges our status as both an UN PRI Signatory and a responsible investor, and we guarantee ESG reporting in each investment case and define acceptable investments.
Monitoring is continuous and we actively engage in dialogue, if necessary on important issues. We follow very carefully the continuity and quality of reporting.
What comes to PE, the sustainability of investee funds is also assessed and monitored continuously with, e.g. a regular ESG inquiry sent to the investee funds and in discussions with them. In connection with each quarterly report sent to investors, eQ produces an assessment of the status of each investee fund regarding ESG performance as well as of the ESG events related to the fund.