Environmental, social and governance (ESG) investing, and other variants thereof, has been measurably growing in the private funds industry in recent years, driven by substantial demand from institutional investors. Insufficient disclosure to investors remains an issue, however, particularly regarding the integration of sustainability risks related to ESG investing and how adverse sustainability impacts inform investment decision-making and advisory processes. Working from that premise, the E.U. published a regulation on December 9, 2019 (Regulation) that goes into effect on March 10, 2021, with some product rules to be implemented by December 30, 2022. In a guest article, Arendt & Medernach partners Isabelle Lebbe and Stéphane Badey analyze the disclosure requirements introduced by the Regulation, identify its likely effect on PE sponsors, provide guidance to fund managers on how to successfully comply with its requirements and describe certain unresolved issues practitioners need to grapple with in the long term. See our two-part series on ESG factors in fund investing: “Past, Present and Future” (Nov. 10, 2016); and “Designing an ESG Investing Policy” (Nov. 17, 2016).