Navigating ESG issues during the private fundraising process
SEC examinations
The SEC examines compliance with ESG disclosure
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Client disclosure
■ Adviser disclosure
Disclosures
Can be found anywhere a firm makes statements to investors or potential investors (e.g., PPMs / prospectuses,
DDQs, websites, marketing decks, side letters, etc.)
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Ensure that all investor-facing communications are consistent with ESG standards and application (and each
other)
Disclosures should be clear and precise and tailored to actual practices
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Consider including definition of what the adviser means by "ESG"
Disclose how ESG is used
Consider careful disclosure of internal or third-party standards or scoring
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Do not overstate the extent to which the firm may consider ESG - be aware of vague laudatory statements
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ROPES & GRAY
Review current disclosures and representations line by line
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