EDF’s New Tool for ESG Management in Private Equity

Authors

• John Hodges

  Former Vice President, BSR

EDF’s new environmental, social, and governance (ESG) management tool—which BSR is helping roll out—will help private equity companies integrate ESG analysis as a fundamental part of investment decisions.

The tool will help companies establish ESG management programs, assess their current performance, and create measurable results. It defines 21 best practices, which include ensuring senior leadership’s commitment to ESG, integrating ESG management into the due diligence process, and integrating ESG monitoring and reporting into portfolio companies.

As investors and stakeholders demand greater transparency, this tool will help private equity firms develop stronger portfolios and attract new limited partners, who increasingly require high-quality ESG management as part of their investment decisions.

BSR’s research in private equity and ESG management helped inform the EDF tool. For more background on BSR’s work, read “Reporting on Environmental, Social, and Governance Consideration in the Private Equity Sector” or contact John Hodges.