For several years, AP6 has been carrying out ESG assessments of private equity funds and providing systematic feedback along with examples of good practice. These assessments cover the funds’ processes for integrating sustainability when they invest in companies and during the holding period. Sustainability reporting to investors and other stakeholders is also assessed. These assessments are limited to assessing processes for ESG integration. They do not assess the actual impact that portfolio companies have on people and the environment. The reason for this limitation is that there simply isn’t enough comparable information available on the actual impact of AP6’s investments. AP6 believes that improved ESG processes over time, will positively affect the actual impact from portfolio companies.
(Enlarge by clicking on image)
ESG assessment of funds 2019
In 2019, AP6 met with 25 fund managers as part of the annual ESG assessment of the fund portfolio. The average score in the fund portfolio increased in 2019 compared to the year before, largely because many funds improved their score in one or more areas. The overall assessment is that all funds strive to actively address sustainability and many have made significant progress. Just as in prior years, funds with formalized ESG processes and a high level of ESG expertise received the highest scores.
(Enlarge by clicking on chart)