ESG and Responsible Investment

The BVCA promotes private equity and venture capital’s role as committed responsible investors, building value in businesses for investors, society and a greener future.

Private equity and venture capital firms are committed responsible investors and focussed on measuring, managing and responding to the Environmental, Social and Governance (ESG) risks and opportunities attached to their portfolio companies.

Alongside increased consideration of ESG issues at firm level, this reflects the momentum behind Responsible Investment and sustainability amongst PE/VC fund managers, investors and wider stakeholders alike.

Sustainability issues, especially climate and other environmental considerations, have become deeply embedded in global political discourse. This has spurred policymakers and regulators to design and implement a range of sustainability-related rules that affect businesses across the UK financial services industry, private equity and venture capital firms included.

The BVCA is a supporter of Initiative Climat International (iCI) and ESG_VC.

Net zero

The BVCA is actively encouraging the PE and VC industry to sign up to initiatives such as iCI, IIGCC and Ceres. These focus on collecting data, agreeing common methodologies and sharing best practices to make net zero a reality. These networks also offer pathways for firms seeking to make net zero commitment and join groups such as the Net Zero Asset Managers Initiative, which is a partner in the UN Race to Zero Campaign. Further detail on the role of private equity and venture capital can be found here.

Training and resources

An in-depth introduction to Responsible Investment, why it matters, and insights on how to integrate ESG considerations into investment strategies can be found in the Responsible Investment Toolkit, the latest iteration of the BVCA’s Responsible Investment Guides. This provides practical advice throughout the investment life-cycle, from due diligence through to exit, as well as at the house level and includes case studies, illustrating responsible investment in action.

The BVCA has a Responsible Investment e-Learning Course, formed of a number of modules relating to each stage of the investment process. Further information is available here.

Policy developments

The BVCA’s policy work in this area spans EU and UK legal and regulatory developments. We are working with our members and other associations to track and respond to developments in UK sustainability regulation, such as the introduction of reporting requirements based on the Recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) under the UK Government’s TCFD Roadmap, and new economy-wide Sustainability Disclosure Requirements in the recently published Roadmap to Sustainable Investing. We are also closely following developments EU sustainability regulation with Invest Europe and others to contribute to the development of EU rules.

ESG and Responsible Investment

Net zero

Training and resources

Policy developments

Excellence in ESG - Recognising outstanding commitment to ESG principles

Achieving Net Zero – BVCA Autumn Journal 2021

Useful resources

BVCA’s position on climate change and Net Zero

BVCA Responsible Investment Toolkit

Excellence in ESG - Recognising outstanding commitment to ESG principles

Further information