An investor initiative in partnership with UNEP FI and the UN Global Compact. Responsible Investment in Private Equity. A Guide for Limited Partners

Transcription

1 A ivestor iitiative i partership with UNEP FI ad the UN Global Compact Resposible Ivestmet i Private Equity A Guide for Limited Parters

2

3 Cotets About this guide 4 Itroductio 5 Guidace geeral 6 Guidace pre-ivestmet stage 6 Due diligece Legal documetatio Guidace post-ivestmet stage 8 Moitorig Egagemet Aex 1: List of potetial questios 9 Aex 2: The PRI Priciples ad this Guide 11 Aex 3: Idicative survey of LP expectatios o ESG issues 12 Aex 4: Additioal Sources of Guidace 14 About The PRI The Priciples for Resposible Ivestmet (PRI) provide a framework for helpig ivestors build evirometal, social ad goverace cosideratios ito the ivestmet process, thereby achievig better log-term returs ad more sustaiable markets. The six Priciples of the PRI Iitiative were developed by, ad for, istitutioal asset owers such as large pesio fuds ad fud maagers. The Iitiative ow has over 500 sigatories made up of fiacial istitutios from 32 coutries with roughly US$18 trillio of assets uder maagemet. The Priciples themselves, a full list of sigatories ad more iformatio ca be foud at PRI sigatories make a commitmet to apply the Priciples across all asset classes. It is up to each sigatory to decide how best to apply the Priciples to their ivestmet activity. Roughly 75% of PRI sigatories have developed their ow tailored Resposible Ivestmet policy. Where ecessary, ad at the request of the Board, the PRI Secretariat covees groups of experts to cosider how to support sigatories cotiuous improvemet i implemetig the Priciples. The Board requested the PRI Secretariat to iitiate work o Private Equity i November Iformatio o the PRI s work i other asset classes is available at

4 About This Guide This guide describes some of the uique characteristics of private equity ivestmets ad provides suggestios o how the PRI Priciples could be applied to the asset class. It aims to help LPs assess the extet to which a GP s ivestmet ad owership processes are cosistet with the LP s ow commitmets as a PRI sigatory. Its scope addresses egagemet ad iformatio that a LP ca cosider both before ivestig i a fud ad durig the life of that fud. The guide ca be applied to ay type of PE ivestmet icludig: Veture Capital; Mid-Market; Large Buy-Out; Mezzaie; Secodary ivestmets; Distressed ad Special Situatios; ad Fuds of Fuds. This guide should ot be used as a checklist: it is a startig poit from which PRI sigatories ca develop their ow approach to Resposible Ivestmet i the private equity asset class. There is presetly ot eough widespread experiece with the applicatio of the PRI Priciples i private equity ivestmets to defie best practice. This guide is targeted at ivestors (Limited Parters), but may also be of use to private equity firms (Geeral Parters). Nothig i this guide iteds to imply that PRI sigatories should dissuade a private equity fud from ivestig i portfolio compaies based o their locatio, sector or the ature of their ESG impacts. To the cotrary, sigificat value may be derived from ivestig i ad improvig compaies with sigificat but poorly maaged ESG-related risks or opportuities. While the applicatio of this guide iteds to esure that the scope of iformatio o which ivestmet ad owership decisios are made o behalf of a fud icludes ESG issues, it does ot ited to alter the GP s role as decisio-maker. This guide also does ot imply that ew chaels are ecessarily required for the commuicatio of ESG-related iformatio. The PRI Board ecourages all PRI sigatories to use this guide as a basis for developig their ow approaches to Resposible Ivestmet i Private Equity. We ited to iclude a questio i the 2010 reportig ad assessmet tool process o the degree to which this Guide has bee helpful. We also ited to udertake a exteded period of egagemet o the Guide durig Based o this ad other iformatio, the PRI Secretariat will review ad, where ecessary, revise this guide i This guide was developed by the PRI s Steerig Committee o Private Equity. The Steerig Committee was established i September 2008 with represetatives from asset owers, asset maagers, private equity houses ad idustry associatios. The Steerig Committee icluded PRI sigatories ad o-sigatories, ad reported to the PRI Board. The Steerig Committee was maaged by Tom Rotherham, Ka Xi ad Jerome Tagger, ad its members were: Actis (Ritu Kumar), AlpIvest (Wim Borgdorff, Maaike va der Schoot), AP2 (Carl Rose), APG (Rob Lake), Blue Wolf Capital Maagemet (Mike Musuraca), CalPERS (Jesus Arguelles), CalSTRS (Margot Wirth), Doughty Haso (Guy Paiser), EVCA (Javier Echarri, Serge Raicher, Vicet Neate), La Caisse de dépôt et placemet du Québec (Pierre Piche, Michel Lefebvre), La Caisse des Dépôts et Cosigatios (Patricia Jeajea), New Zealad Superauatio Fud (Ae- Maree O Coor), Patheo (Carol Keedy, Hele Steers), PCG Asset Maagemet (Michelle Davidso), PGGM (Leo Lueb), Robeco (Stefa de Doelder), UN Global Compact (Gavi Power). USS (David Russell), Washigto State Ivestmet Board (Liz Medizabal). Apax Parters, The Blackstoe Group, The Carlyle Group, Kohlberg, Kravis Roberts & Co, Silver Lake, TPG, Permira ad PEC Presidet Doug Lowestei also participated, represetig the Private Equity Coucil (whose other members are Apollo Global Maagemet, Bai Capital Parters, Hellma & Friedma, Madiso Dearbor Parters, Providece Equity Parters ad TPG). 4 Priciples for Resposible Ivestmet Resposible Ivestmet i Private Equity

5 Itroductio Resposible ivestmet ad private equity Both public ad private equity ivestors ultimately ivest i the same uderlyig asset: compaies. As a result, much of the ESG-related research, aalysis ad services used by public equity ivestors may also be of use to private equity ivestors. Despite the similarity i the uderlyig asset, private equity (PE) has a umber of uique characteristics that should be cosidered whe a ivestor is developig a approach to Resposible Ivestmet. PE fuds are geerally structured as Limited Parterships, which are maaged by a Geeral Parter (GP). Ivestors, kow as Limited Parters (LP), subscribe for limited partership iterests by ivestig i a fud. As maagers of the fud, GPs are resposible for sourcig ad aalyzig ivestmets, executig o ivestmet decisios, moitorig ad advisig the fud s ivestmets, ad evetually sellig the portfolio compaies. Some of the key characteristics of PE iclude: A ivestmet i PE is a log-term ivestmet: LPs geerally commit capital to a fud for a period i excess of 7 years. The fud itself is a blid pool: the uderlyig assets (portfolio compaies) are ot kow util fud is operatioal. The LP s ivestmet decisio is therefore based sigificatly o the ature of the fud s madate ad the quality ad history of the GP. A ivestmet i a PE fud is relatively illiquid. The LP caot easily sell partership iterests (a decisio which ofte requires permissio from the GP), ad chages to the ivestmet madate may require egotiatio with all other LPs. Other tha the iitial decisio to subscribe to a fud maaged by a particular GP, almost all of the discretio over ivestmet decisio-makig ad owership activities lies with the GP. A GP s request for capital from the LPs to make a ivestmet ca be a relatively quick process, ot givig LPs much time for cosideratio or review of the ivestmet propositio. Although the owership period of portfolio compaies is ofte as log as 5 years, PE is a buyto-sell model, ot buy-to-ow. All ivestmets must be sold withi the life of the fud. GPs seek sigificat ifluece or cotrol over their ivestmets, ad frequetly purchase a full or majority stake i the portfolio compay ad omiate a Board member / members. Thus, i may istaces, the GP acts as both a asset maager ad as a compay Director (i.e. with ifluece over corporate strategy, a goverace role, ad potetially direct corporate maagemet). The owership ad goverace model allows for a much closer aligmet of iterests betwee asset owers, the ivestmet maager ad corporate maagemet, ad therefore there is a potetially higher likelihood that owers ca ifluece how maagers address ESG issues withi the uderlyig portfolio compaies. There is frequetly a sigificat level of disclosure to LPs, eve if public disclosure is ofte limited. Because the relatioship betwee LPs ad GPs is structured as a legal partership, GPs are frequetly receptive to ogoig egagemet ad regular dialogue with their LPs. A Guide for Limited Parters Priciples for Resposible Ivestmet 5

6 Guidace for Limited Parters Geeral A broad rage of actors may cotribute to ad ifluece a LP s ivestmet decisio-makig ad owership process. The more of these actors that are aware of, ad capable to act upo, a LP s commitmet to itegrate evirometal, social ad goverace (ESG) issues ito their private equity ivestmets, the more successful the approach will be. 1. LPs should develop, ad commuicate to relevat parties, a policy statemet outliig their approach to Resposible Ivestmet i Private Equity. 2. LPs should esure that their staff, cosultats, service providers, itermediaries ad GPs are aware of their approach to Resposible Ivestmet, ad that staff dealig directly with ESG issues have access to relevat traiig ad/or sources of specialist expertise. 3. LPs should seek to esure that their iteral due diligece ad fud selectio processes give due regard to ESG criteria, for istace by developig ivestmet aalysis criteria, due diligece tools or icludig a sectio i the ivestmet recommedatio report assessig the GP s approach to ESG. 4. LPs should iclude ESG criteria i the madates that they give itermediaries (e.g. ivestmet cosultats) or service providers actig o their behalf i the fud selectio or due diligece process. 5. LPs should validate their assessmet of whether GPs, itermediaries ad service providers meet relevat ESG criteria. This could be doe by assessig their policies, systems ad/or access to expertise, ad/or by reviewig past examples of ESG itegratio. Pre-ivestmet stage A LP is a passive parter i the maagemet of a fud: other tha the iitial decisio to subscribe to a fud, ivestmet ad risk maagemet discretio is geerally delegated to the GP. As a result, If ESG issues are ot formally addressed prior to sigig a ivestmet agreemet it may be more difficult to do so afterwards. Prior to ivestig i a fud, a LP should actively esure that the GP has the policies, systems ad expertise eeded to itegrate ESG cosideratios ito their ivestmet decisios ad owership activities. Prior to ivestig, the LP should also discuss the ESG-related disclosures that the GP ca provide durig the life of the fud. Due Diligece 6. LPs could provide GPs with a statemet explaiig the LP s commitmets uder the Priciples for Resposible Ivestmet, icludig where relevat a copy of the LP s Resposible Ivestmet policy, ad request iformatio o how the GP could help esure that these commitmets ad/or policy are applied withi the fud. 6 Priciples for Resposible Ivestmet Resposible Ivestmet i Private Equity

7 7. LPs could ask GPs whether they have a ESG policy, what this etails ad what the status of implemetatio is. 8. LPs could ask for examples of how GPs have i the past idetified ad addressed ESG-related risks ad opportuities i their portfolio. 9. LPs could, through iformal discussios, assess the degree to which the GP uderstads the potetial fiacial implicatios of, ad is committed to improvig their maagemet of, ESG issues. 10. LPs could iclude ESG-specific questios i due diligece questioaires (see Aex 1). 11. Give the duratio of the ivestmet period, ad the likelihood that GPs ca further develop their approach to ESG over the life of a fud, LPs should cosider whether failure of GPs to provide adequate resposes durig the due diligece process should ecessarily result i a decisio ot to ivest. A LP could istead decide to ivest but the to egage with the GP i order to ecourage ad support improved itegratio of ESG issues i the maagemet of the fud. I such cases, recogitio by the GP of the importace of ESG issues ad/or a formal commitmet to address them may be sufficiet if the LP follows up with active egagemet. 12. Notig that they may ot have the resources to actively egage with all of the GPs i whose fuds they have ivested, LPs could use the iformatio obtaied durig the due diligece process to prioritise which GPs warrat egagemet o what issues. Documetatio 13. Commitmets related to ESG ad Resposible Ivestmet should be icluded i documetatio provided by the GP to the LP prior to ivestig i a fud. This documetatio could iclude: The GP s Resposible Ivestmet policy, or other iformatio o how ESG issues are addressed durig the ivestmet ad owership processes Recogitio of the LP s commitmet to the PRI Priciples, or of the LP s Resposible Ivestmet policy A descriptio of the ESG-related iformatio that a LP ca expect to receive durig the life of a fud, for istace i existig: Aual reports o the fud ad/or portfolio compaies Capital calls Ivestmet memos A statemet o whether, ad if so how, the GP would provide updates if the GP deems a sigificat or material ESG issue to have arise i a portfolio compay A Guide for Limited Parters Priciples for Resposible Ivestmet 7

8 Post-ivestmet stage Oce ivested i a fud, a LP geerally has oly a passive role i the owership activities. While may fuds establish a Advisory Committee to eable the GP to egage with LPs, resposibility for decisio-makig lies with the GP. As a result, LPs should focus o moitorig how the GP is itegratig ESG issues ito their ivestmet decisios ad owership activities, ad egagig with the GP o specific ESG issues. While the GP may be able to provide a broad rage of detailed ESG-related iformatio, icludig at both fud ad portfolio compay-level, LPs should ask oly for iformatio that they ited to aalyse ad use, ad should recogise that commercially sesitive iformatio may i some istaces have to remai cofidetial. Moitorig 14. LPs could request iformatio from the GP either formally (e.g. , miuted meetigs, aual report, fud reports, portfolio compay reports) or iformally (e.g. telephoe calls, umiuted meetigs). 15. Where a commitmet relatig to ESG issues has bee commuicated by the GP (e.g. i a Resposible Ivestmet policy), LPs could request formal updates, for example i aual reports or other existig chaels. 16. LPs could request that their GPs develop criteria ad procedures for otifyig the LP should the GP deem that sigificat or material ESG-related risks have arise durig owership. 17. LPs could ecourage their GPs to report o the applicatio of their ow ESG policies ad procedures at their Aual meetigs or at meetigs of their Fud Advisory Committees. 18. I accordace with Priciples 3 ad 6 of the PRI, LPs should ecourage broader disclosure by GPs of o-cofidetial iformatio o ESG-related issues to other stakeholders. Egagemet 19. LPs could attempt to use both formal ad iformal egagemet with the GP to foster dialogue, as appropriate, with respect to the importace of ad approaches to Resposible Ivestmet ad ESG issues. 20. LPs could ecourage the GP to develop its ow RI policy, which should iform the GP s egagemet with its portfolio compaies, buildig for istace o the PRI, the UN Global Compact ad the US Private Equity Coucil s (PEC) Guidelies. 21. Iterally, LPs could share ESG-related research, aalyst otes ad other iformatio betwee their public ad private equity teams. This could iclude sector- ad issue-based aalysis. 22. Where LPs believe they have idetified a material ESG risk or opportuity, they could request the GP to egage with relevat portfolio compaies ad to report back to the LPs. 23. LPs could work with peers ad GPs to further develop ad improve ESG stadards ad promote sustaiability withi the PE sector. 24. LPs could ecourage their GPs to become a PRI sigatory, ad to participate i the PRI Private Equity Workstream. 8 Priciples for Resposible Ivestmet Resposible Ivestmet i Private Equity

9 Aex 1 Topics for LPs questioaires ad egagemet The followig list provides a overview of the kids of questios that could help LPs itegrate ESG issues ito their due diligece processes ad i their ogoig egagemet with GPs. This is ot iteded as a checklist. Each LP should develop a approach suited to their ivestmet style ad commercial iterests. LPs should also be careful ot to ask for a volume or detail of iformatio that will ot be used. However, cosideratio should be give to icludig elemets of each of the six headigs below. Whe developig a approach, LPs could draw o their experiece of ESG i public equities. Because differet fuds may have differet exposure to ESG-related risks ad opportuities, ad because differet GPs may have differet capacity to address ESG issues, LPs may choose to apply differet questios to differet GPs. Fud madate LPs should iquire ito the ature of the fud madate i order to determie whether the fud, for example: i. has a focus o sustaiability-related themes (e.g. clea techology, educatio, health) ii. focuses o idustrial sectors ad/or coutries that the LP cosiders to have high ESG-related risk/opportuity profiles iii. has a ivestmet policy cosistet with the LP s ow ESG-related exclusios policy (e.g. ivestmets will ot be made i specific sectors or coutries) Policies ad processes LPs should iquire ito whether the GP has a Resposible Ivestmet policy, or aother formalised ad cosistet approach for itegratig ESG factors ito ivestmet decisio-makig ad owership activities. This could iclude whether the GP, for example: i. is a sigatory to the PRI, or has adopted ay other ESG-related stadards or codes ii. has icluded ESG-related terms i previous Limited Parter Agreemets (LPA) or side letters iii. cosiders ESG issues i the due diligece process for every potetial portfolio compay iv. icludes ESG factors i iteral audits at the fud ad portfolio compay level v. has processes i place to esure that ESG issues are maaged at the portfolio compay level vi. has a policy o coflicts of iterest ESG expertise LPs should iquire ito whether the GP has access to particularly importat types of ESG-related expertise, ad whether the expertise is iteral; o fud advisory committees; from exteral cosultats ad/or withi portfolio compaies. A Guide for Limited Parters Priciples for Resposible Ivestmet 9

10 Disclosure ad Egagemet LPs should iquire ito the ature ad frequecy of iformatio that the GP will provide durig the life of the fud, which would eable the LP to esure that the fud is beig operated i a maer cosistet with the LP s Resposible Ivestmet policy ad/or commitmets as a sigatory to the PRI. This could iclude formal ad iformal commuicatio through a umber of chaels, for example: i. Capital calls ii. Ivestmet memos iii. reportig at the fud level iv. reportig at the portfolio compay level v. commuicatio with, ad discussio withi, the advisory committee vi. aual geeral meetigs vii. the GP s approach to ogoig egagemet with LPs viii. the GP s approach to public disclosure Portfolio compaies LPs should iquire ito the how the GP egages with its portfolio compaies o ESG factors. This could iclude, for example: i. whether ESG factors are withi the scope of resposibilities of GP-appoited Directors ii. the type ad frequecy of ESG iformatio reported by the portfolio compay to the GP, ad whether this icludes the compay s supply-chai iii. how GPs assess portfolio compaies compliace with ESG-related laws ad regulatios iv. the use of idepedet experts or third party audits v. policies to ecourage portfolio compaies to adopt exteral stadards or codes, icludig for example the UN Global Compact vi. examples of previous ivolvemet i ESG decisio-makig withi a portfolio compay Specific ESG issues LPs should also iquire ito a GP s policies o, ad the performace of portfolio compaies agaist, ESG factors that the LP has prioritised, for example climate chage, bribery ad corruptio, health & safety or huma rights. Whe cosiderig which ESG factors to prioritise, LPs may fid it useful to build o sector- or issue-based aalysis udertake by public equities aalysts or ivestors. 10 Priciples for Resposible Ivestmet Resposible Ivestmet i Private Equity

11 Aex 2 The Priciples for Resposible Ivestmet ad this guide This Guide outlies possible actios that ca help LPs apply the PRI Priciples to their private equity ivestmets. The idex below idicates where guidace applicable to specific PRI Priciples ca be foud. However, the effectiveess of some of the actios suggested i this Guide may be cotiget o the applicatio of other elemets, ad so cautio should be give whe applyig oly parts of the Guide. 1 We will icorporate ESG issues ito ivestmet aalysis ad decisio-makig processes. Possible actios are cotaied i: Guidace: Geeral Guidace: Pre-Ivestmet Stage 2 We will be active owers ad icorporate ESG issues ito our owership policies ad practices. Possible actios are cotaied i: Guidace: Geeral Guidace: Pre-Ivestmet Stage Guidace: Post-Ivestmet Stage Aex 1: Suggested questios o Disclosure ad Egagemet; Portfolio Compaies 3 We will seek appropriate disclosure o ESG issues by the etities i which we ivest. Possible actios are cotaied i: Guidace: Geeral Guidace: Pre-Ivestmet Stage Guidace: Post-Ivestmet Stage Aex 1: Suggested questios o Fud madate; Policies ad Processes; ESG Expertise; Disclosure ad Egagemet; Portfolio Compaies; ad Specific ESG Issues 4 We will promote acceptace ad implemetatio of the Priciples withi the ivestmet idustry. Possible actios are cotaied i: Guidace: Geeral Guidace: Pre-Ivestmet Stage Guidace: Post-Ivestmet Stage 5 We will work together to ehace our effectiveess i implemetig the Priciples. Possible actios are cotaied i: Guidace: Geeral Guidace: Post-Ivestmet Stage 6 We will each report o our activities ad progress towards implemetig the Priciples. Possible actios are cotaied i: Guidace: Geeral A Guide for Limited Parters Priciples for Resposible Ivestmet 11

12 Aex 3 Idicative survey of LP expectatios o ESG issues The scope of this toolkit was iformed by a survey of 15 global LPs who are participatig i the PRI PE Steerig Committee. While ot represetative of all PRI sigatories, these LPs represet over $USD100 Billio i assets allocated to private equity ivestmets, ad iclude some of the world s biggest istitutioal ivestors. The survey was completed i Jauary 2009 ad sought to idetify what kid of ESG-related iformatio some leadig LPs expect from their GPs. The questios were grouped ito three categories: Geeral Pre-Ivestmet (due diligece) Post-Ivestmet (owership) Results of the survey *N.B. Figures idicate percetage of respodets aswerig yes. Geeral Would you expect all your potetial ad future GPs to respod to a miimum set of ESG-related questios as defied by your orgaizatio? 93.3% If yes, would you expect all PRI sigatories to iclude some of the same basic ESG-related questios i their ow relatioships with their GPs? 66.7% Pre-ivestmet Stage Would you expect a GP to provide you with a copy of a Resposible Ivestmet policy or missio statemet? 80.0% Would you expect a GP to provide evidece of how their Resposible Ivestmet policy is implemeted? 93.3% Would you expect a GP to provide examples of how their Resposible Ivestmet policy has iflueced decisio-makig? 93.3% Would you expect a GP to make either all or part of their Resposible Ivestmet policy publicly available? 73.3% Would you expect a GP to sig a side letter that ackowledges your Resposible Ivestmet policy or otherwise addresses ESG issues? 73.3% Would you expect to be iformed of whether a GP has staff dedicated to RI? 100.0% Would you expect a GP to iform you of whether they are a member of the PRI or other similar orgaizatios? 100.0% 12 Priciples for Resposible Ivestmet Resposible Ivestmet i Private Equity

13 Post-ivestmet Stage Would you expect a GP to provide ESG-related iformatio i aual reports at the fud level? 93.3% Would you expect a GP to provide you with a aual report at the GP level? 93.3% If you would expect a GP to provide a aual report, would you also expect this to iclude iformatio o Resposible Ivestmet? 93.3% If you would expect a GP to provide a aual report, would you also expect this to be made publicly available? 7.1% Would you expect a GP to iclude relevat ESG-related iformatio i aual reportig to you o Portfolio Compaies? 85.7% Would you expect a GP to iclude relevat ESG-related iformatio i quarterly reportig to you o Portfolio Compaies? 46.7% Would you expect a aual statemet from the GPs cofirmig that their Resposible Ivestmet policy, or specific ESG terms icluded i a side letter, was complied with? 64.3% Would you expect relevat ESG issues to be itegrated ito capital calls or ivestmet memos? 85.7% Would you expect to have a aual opportuity to discuss ESG issues with a GP? 100.0% If so, would you expect this opportuity to discuss ESG issues with a GP to be ope to all iterested LPs i the fud? 66.7% A Guide for Limited Parters Priciples for Resposible Ivestmet 13

14 Aex 4 Additioal sources of guidace Whe developig their ow approach to Resposible Ivestmet i private equity, Limited Parters ca draw o a broad rage of other sources of guidace, icludig: UN Covetios ad Iitiatives UN Global Compact ( The Uiversal Declaratio of Huma Rights ( ILO Declaratio o Fudametal Priciples ad Rights at Work ( declaratio) The Rio Covetios ( The UN Covetio Agaist Corruptio ( idex.html) Other Itergovermetal Orgaisatios OECD Guidelies for Multiatioal Eterprises ( OECD Ati-Bribery Covetio ( OECD Priciples of Corporate Goverace ( text) Iteratioal Fiacial Istitutios IFC Performace Stadards ( PerformaceStadards) Equator Priciples ( Private Equity Associatios: US PEC Guidelies for Resposible Ivestmet ( BVCA Walker Guidelies ( EVCA Corporate Goverace Guidelies ( A comprehesive list of public ad private codes, stadards ad iitiatives that may be applicable to portfolio compaies is available i the draft ISO Guidace o Social Resposibility. 14 Priciples for Resposible Ivestmet Resposible Ivestmet i Private Equity

15 Share your experiece with Resposible Ivestmet i Private Equity The PRI will udertake a exteded period of egagemet o the Guide durig Based o this ad other iformatio, the PRI Secretariat will review ad, where ecessary, revise this guide i If you would like to provide iput to this review process, please cotact ifo@upri.org. The iformatio cotaied i the report is meat for iformatioal purposes oly ad is subject to chage without otice. The cotet of the report is provided with the uderstadig that the authors ad publishers are ot herei egaged to reder advice o legal, ecoomic, or other professioal issues ad services. Subsequetly, UNEP FI is also ot resposible for the cotet of web sites ad iformatio resources that may be refereced i the report. The access provided to these sites does ot costitute a edorsemet by UNEP FI of the sposors of the sites or the iformatio cotaied therei. Uless expressly stated otherwise, the opiios, fidigs, iterpretatios ad coclusios expressed i the report are those of the various cotributors to the report ad do ot ecessarily represet the views of UNEP FI or the member istitutios of the UNEP FI partership, UNEP, the Uited Natios or its Member States. While we have made every attempt to esure that the iformatio cotaied i the report has bee obtaied from reliable ad upto-date sources, the chagig ature of statistics, laws, rules ad regulatios may result i delays, omissios or iaccuracies i iformatio cotaied i this report. As such, UNEP FI makes o represetatios as to the accuracy or ay other aspect of iformatio cotaied i this report. UNEP FI is ot resposible for ay errors or omissios, or for ay decisio made or actio take based o iformatio cotaied i this report or for ay cosequetial, special or similar damages, eve if advised of the possibility of such damages. All iformatio i this report is provided as is, with o guaratee of completeess, accuracy, timeliess or of the results obtaied from the use of this iformatio, ad without warraty of ay kid, expressed or implied, icludig, but ot limited to warraties of performace, merchatability ad fitess for a particular purpose. The iformatio ad opiios cotaied i the report are provided without ay warraty of ay kid, either expressed or implied. A Guide for Limited Parters Priciples for Resposible Ivestmet 15

16 A ivestor iitiative i partership with UNEP FI ad the UN Global Compact