SASB’s New ESG Integration Guide for Private Equity

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Stockholm (NordSIP) –  The Sustainability Accounting Standards Board (SASB) has published a new report, explains how investors can use SASB Standards to build an ESG strategy for private equity. The paper, titled “Integrating ESG Holistically In Private Equity: A Strategic Approach” was authored by Jeff Cohen, Director of Capital Markets Integration, Head of Private Investment Initiatives.

“After receiving countless questions from confused LPs and GPs about the various guidance and actors that have proliferated the ESG space over recent years, I have been searching for more effective ways to guide them to integrate ESG in a relevant and cost-effective way,” Cohen explains. “In this report, I set out to effectively link some of the differentiated parts of the ecosystem and apply them to a conventional private equity investment process. I hope this report provides useful insight to help investors understand these interconnections and apply them to their ESG integration journey.”

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The report describes and explains the interconnected ESG ecosystem and offers practical insights for the various stages of the investment process through a general partnership lens. It also includes case studies from Generation Investment Management and Partners Group.

According to the author, the report does not prescribe any specific application of the principles, tools, and resources within the ESG ecosystem because risks and opportunities of investee companies can vary across an investor’s portfolio. “However, in identifying the underlying utility of key ESG actors and the synergistic effects of their application, investors may find a clearer path toward effective ESG integration.”

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