As part of the legal documentation, eQ Private Equity requests a side letter acknowledging our PRI status and our ESG reporting requirements. Commitments are made after a thorough discussion on ESG status in manager processes and when we are confident the manager will be able to comply with our ESG goals. We endeavour to impact the selected managers to avoid sectors and businesses that might raise ethical questions.
Under ESG DD eQ Private Equity aims to find out prospective fund manager’s attitude including its ESG policy and overall commitment to sustainability. As part of our ESG DD, prospective fund managers are requested to describe how they integrate their responsible investing policy into their investment processes (e.g. ESG check lists, usage of external consultancy services, ESG disclosure policy). Our target is to get a comprehensive understanding of how ESG matters are incorporated into manager’s investment process, dedicated ESG resources and the process of managing and reporting ESG matters.
Based on the material received and onsite visits we assess and rate all the potential investee funds. This assessment is annually updated based on our ESG Query to portfolio funds. Major deviation from our ESG performance targets set, may cause rejection of the potential investment.