Green Returns

Tools and resources for private equity

ESG Management Tool for Private Equity

In response to growing interest in environmental, social and governance (ESG) issues among leading private equity firms and their institutional investors, EDF has developed a comprehensive ESG Management Tool for the private equity sector. The Tool defines the building blocks of a successful ESG management program and provides private equity firms of all sizes a framework to assess, analyze and improve their ESG performance.

What does ESG mean?

ESG stands for environmental, social and governance and is a term used by investors to describe non-financial performance indicators. The growing interest in ESG factors from investors reflects the view that environmental, social and corporate governance issues directly affect financial performance. More information can be found here and here.

How the Tool works

Free to download, the Excel-based Tool produces three outputs that can be used to evaluate a private equity firm’s current ESG management practices and make plans for future improvements. In less than an hour, users can assess current performance across 22 best practices for ESG management from options including; not yet started, initial, developing and leading.

ESG Management Tool Development and Uses >>