ESG Claims in Private Equity Investment Documents: Mapping Liability for Sustainability Statements

Introduction : While there is nothing new in private equity funds featuring ESG-related commitments in their marketing materials, an increasing number of funds are now embedding ESG-related undertakings within the operative documents. This includes indicative ESG targets within term sheets, specific ESG-related exclusions and disclosure covenants inside letters and disclosure of portfolio-level ESG metrics within fund reports to LPs. The practical significance of this development lies in the...