Invest Europe to set ESG reporting standards

Posted: 18/01/2022

Eric de Montgolfier_InvestEuropeInvest Europe, the association representing Europe’s private equity, venture capital and infrastructure sectors, is to develop a standard for how private equity and venture capital firms report on environmental, social and governance (ESG) issues.

The new standard, which is expected to be established by this summer, will enable private equity firms to navigate and comply with the rising demands for action and openness on their ESG activities.

In 2021, a wide range of new ESG-related regulatory reporting requirements were set globally, regionally and nationally, including the EU’s Sustainable Finance Disclosure Regulation. 

In parallel, a range of privately led initiatives, commercially and non-commercially driven, were developed. Some of these respond to regulatory standards, others are tailored to meet the demands of institutional investors.

Invest Europe CEO Eric de Montgolfier (pictured) commented: “The proliferation of ESG reporting requirements places a heavy burden on European private equity managers, many of which are spending too much time developing templates and reporting rather than focusing on delivering tangible ESG results across their firms and within portfolio companies.

“By creating a standard for ESG reporting, Invest Europe will provide transparency, clarity and harmony to this space, benefiting firms, their investors and stakeholders more broadly.”

In November 2021, Invest Europe published its Climate Ambition, in which it committed to support the 2050 goals set out in the Paris Climate Accords.

One of the workstreams needed to fulfil that ambition is building and maintaining tools for members and the industry to comply with the rules, and to develop standards that will help the industry move towards net zero.

European Data Cooperative

In parallel, the European Data Cooperative (EDC) will begin collecting ESG data from the European private equity sector on key performance indicators, including actions related to climate change, female representation in private equity-backed companies, and bribery and corruption policies. 

The EDC – a database established in partnership with national private equity associations by Invest Europe – gathers fundraising, investment, divestment and economic impact data on more than 1,600 European private equity and venture capital firms and their portfolio companies. 

Invest Europe’s reporting standard will be developed with members, representing LPs and GPs active in Europe, and across the range of private equity segments from local venture capital funds to global buyout groups. 

Add a Comment

  • *
  • *
  • *
  • *
  • Submit

It's easy to stay current with

Just sign up for our email updates!

Yes please! No thanks!