Legal & Regulatory News

PRI publishes ESG factor map to support collaboration between private equity and private credit investors

On 28 June 2022, the Principles for Responsible Investment (PRI) published an ESG factor map (the Map) which is designed to facilitate collaboration between sponsors, co-investors and lenders.The Map provides for information obtained from portfolio companies to be shared with co-investors and lenders pre-investment, while at the same time aiming to consolidate ESG-related expectations and requests.

The Map is intended to be completed by target companies pre-investment and is intended to deliver the following benefits:

• Providing standardised minimum disclosure guidance to help private companies prioritise ESG data during the diligence phase.
• Increasing access to ESG data for a broader set of stakeholders, including lenders, co-investors, consultants, service providers and investment banks.
• Reducing the number and variations of data requests among the different parts of the private markets investing eco-system.