This chapter looks at how you can adjust fundraising and LP (Limited Partner) reporting. Limited Partners will show greater interest in sustainability issues in the future, and it is a responsibility of investors to add sustainability as an integral part to LP reportings.
So, what can you do? If you are currently raising a new fund,
- develop a clear vision on how your fund will contribute to solving pressing global social, or environmental issues and provide value for society, and/or
- commit to contributing to the United Nations Sustainable Development Goals.
Both aspects are, of course, closely linked to your investment strategy.
Depending on how strongly you want to integrate sustainability issues, committing to a strong sustainability focus will open up new opportunities to address and win over other kinds of investors for your fund.
2. LP Reporting
If you are currently working with previously raised funds, add sustainability as a fixed agenda topic on all LP meetings and reportings. If you do this, topics should cover
- your progress and activities regarding the integration of sustainability aspects in the investment process (Chapter 5)
- Progress on sustainability topics across your portfolio companies (Chapter 6)
- Activities and progress within your own operations (Chapter 7)
- When raising a new fund, develop a clear sustainability vision or commit to the SDGs in line with your investment strategy.
- For previously raised funds, put sustainability as a regular agenda topic on LP meetings and reportings.