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Responsible Investment

Private Equity International’s report explores the latest developments in ESG and sustainable investing.

Amid a tough fundraising environment and political headwinds, private equity’s efforts towards responsible investment have taken a bit of a beating of late, even if LP commitment generally remains solid. The challenges are piling up, however, from the difficulties associated with proving the financial benefits of acting sustainably, through to new expectations that GPs account for human rights issues in portfolio companies and their supply chains. The pressure is firmly on.

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Cover of the PEI Responsible Investment 2025 report

LATEST IN RESPONSIBLE INVESTING

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Data, climate strategies and decarbonisation are still high on the agenda for fund managers and investors, and this report considers how the industry is moving forward on these issues in light of new frameworks and regulation, as well as increasingly specialised and sophisticated approaches to ESG opportunities and risks. It also examines growing areas of focus, including employee wellbeing and how AI could be applied in an ESG context.

As ESG considerations continue to grow in size, scope and complexity, this special report examines how managers are working to align with industry best practices, while responding to the needs of investors, regulators and other stakeholders. It also explores private equity’s approach to developing sustainability themes, such as biodiversity, the circular economy and the decarbonisation of hard-to-abate sectors.

How do you measure the impact your investment has on ESG and issues from human rights to natural capital? Private Equity International delves into the work being done by GPs and LPs to establish best practices and standardised frameworks.

Covid-19 and the tumultuous events of 2020 galvanised many stakeholders in the private equity industry to act or at least reassess their approaches to ESG-related risks. In this special report, we examine the direction of travel for responsible investment and highlight examples of innovation in the inaugural 30 Big Ideas Shaping ESG list.

LP scrutiny of approaches to ESG is intensifying, with climate change a particular concern. In our annual responsible investment report, we detect a shift in the focus of the environmental debate to one of risk – and whether the underlying portfolio could be under threat from the kind of climate-driven calamity seen with the Australian bushfires.

The focus for investors is changing. LPs are becoming more committed to ESG, to the point where a commitment to responsible investing has become integral to fundraising. Our Responsible Investment Special 2019 looks at how environmental, social and governance issues have evolved from a niche concern espoused by a few evangelists into a mainstream preoccupation, and looks at the crucial questions facing impact investors.

Visit our special reports section, where you’ll find a library of Private Equity International reports on the key issues affecting the industry.

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