Free private markets document template
ESG & Responsible Investment Policy Template
Create a private markets ESG and responsible investment policy covering principles, manager diligence, ownership, monitoring, reporting, exclusions, governance and incidents.
01
Policy purpose
This policy integrates financially material ESG and responsible-investment factors into private markets underwriting, monitoring and governance.
02
Principles
Focus on financial materiality, fiduciary duty, proportionality, transparency and continuous improvement.
03
Scope
All new private markets fund commitments, co-investments, secondaries and continuation-fund decisions.
04
Exclusions
Apply organization-wide prohibited investment restrictions and legal constraints; assess additional exclusions case by case.
05
Manager diligence
Assess ESG governance, resources, pre-investment integration, ownership practices, incidents and LP reporting.
06
Investment underwriting
Identify material ESG risks and opportunities in investment memos; incorporate findings into valuation, terms or approval conditions.
07
Ownership & engagement
Expect managers to use board oversight, operating plans, KPI monitoring and escalation appropriate to control and influence.
08
Monitoring
Review manager ESG reporting annually and escalate material incidents, controversies or persistent gaps.
09
Reporting
Provide annual program-level ESG reporting with material developments, manager progress and methodology limitations.
10
Material incidents
Require prompt manager notification where incidents may materially affect value, reputation, legal exposure or stakeholder obligations.
11
Governance
CIO owns implementation; Investment Committee reviews the policy annually and approves material exceptions.