ILPA launches LP ESG framework

ILPA has released an ESG framework to help LPs evaluate and benchmark GP responses to due diligence efforts, inform goal setting conversations with GPs and measure ESG integration progress over time.

Framework

The framework was developed using mid- and large-cap private equity buyout managers and strategies as a reference point.

The assessment is split into the following three subcategories followed by a worksheet:

General / overview

• Policies and commitments to standards
• Governance
• Communications and reporting
• Investment process

DEI

• Responsiveness to DEI including policies and governance, diversity metrics at GP level, diversity metrics and portfolio company level, recruitment and employee engagement

Climate

• Responsiveness to climate risks and opportunities including governance, strategy, risk management as well as metrics and targets

Within...