Investment policies need to be tailored to company stage
The good news is that 96% of private equity signatories reported that they include asset class-specific guidelines in their responsible investment policies, although this doesn’t tell us how well these are implemented. Furthermore, only 31% of these include guidelines on how they adapt their ESG approach to different company stages and strategies such as venture and growth capital.
Investors need to tailor their policies for early-stage companies or where they do not have control positions to make clear how their responsible investment approach is relevant and viable. For instance, the start-ups that venture capital investors target can have fluid business models and limited resources, making it more difficult to identify ESG risks and opportunities and to collect ESG data.
Read the full article at: www.unpri.org
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