Insights

Aligning ESG objectives with GP partners

1 February 2023

Sustainability & People Report 2022

Front cover of ICG Sustainability & People Report 2022
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We believe that GP partners that are better able to manage ESG risks and capitalise on ESG opportunities across their portfolio may create more lasting value for investors and the underlying assets.

Strategy in focus:

The General Partners (GPs) we partner with vary in terms of size, scale, geographical or sector focus, and ESG (environmental, social and governance) maturity. That is why we carefully evaluate the ESG credentials of potential deals, both of GP partners and underlying assets, and make engagement on ESG matters a crucial component of ICG’s approach.

Ongoing ESG engagement and monitoring is achieved through a combination of board seats, information rights, active engagement with the GP/sponsor on material ESG issues and the Annual GPs Survey and follow up dialogues to discuss progress.

The Strategic Equity team, with support from ICG’s Sustainability & ESG team, targets engagement with GP partners to support them in further enhancing their approach to ESG integration by sharing our experience and networks, as well as resources for portfolio monitoring and reporting. For the first time in 2022, we utilised our corporate Annual ESG survey to assess the ESG practices of underlying assets, and we plan to share key findings with our GP partners to support further ESG improvements.

Continued focus on aligning with GP partners on:

Portrait of men and women holding papers

ESG governance

100%

Of managers have an ESG policy which is broadly aligned with ICG’s Responsible Investing Policy

(2021: 100%)

89%

Of managers have dedicated ESG resource

(2021: 60%)

89%

Are UN PRI signatories

(2021: 79%)

100%

Use board influence to engage on ESG matters

(2021: 100%)

Climate change

44%

Have a formalised approach to managing climate-related risks and opportunities

(2021: 40%)

33%

Already monitor the carbon footprint of portfolio companies

(2021: 30%)

Diversity and inclusion

100%

Of GP partners state that they actively support D&I in their firms

19%

Female investment professionals on average among GP partners

(2021: 14%)

Source: ICG Annual GP survey. In 2022 all 9 GP partners in Strategic Equity IV responded to the survey. In 2021, 10 GP partners in Strategic Equity III and IV responded.

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