In brief: PRI launches venture capital ESG due diligence template

The questionnaire follows a private equity ESG due diligence template from the PRI, which has become widely used by LPs; many GPs have reported receiving variations of it from investors.

The UN-backed Principles for Responsible Investment has produced a template ESG due diligence questionnaire for venture capital investors. VC firms should expect to be asked these questions by potential LPs; the PRI has previously produced a similar ESG due diligence template for later-stage growth equity and buyout investors, which has seen widespread uptake, with many GPs telling New Private Markets that they often receive versions of the PRI’s private equity questionnaire from potential LPs.

The questionnaire asks about the fund manager’s sustainability policies and processes around decision-making, monitoring, measuring and reporting. It is split into sections to reflect different stages of fund management, including fundraising, dealmaking, portfolio management and exits.