Some private equity executives I spoke to the past year, both in my role at PGGM and ERM, mentioned that ESG (environmental, social and governance) integration is becoming less prevalent in the discussions they have with their investors. However, in discussions with their investors we, at ERM, noticed three ESG trends that will impact private equity firms in 2016 and beyond: Institutional investors are setting ESG ambitions, improving ESG monitoring and data availability, and shifting towards ESG value creation.
When you put 100 portfolio managers in a room, very few want to be the odd one out saving the planet.
Responsible investment specialists must become better storytellers for mainstream investors and CFOs.
The use of words such as “externalities”, “extra-financial risks” and “socially responsible investments” often results in the perception that environmental, social and corporate governance (ESG) factors are extraneous to conventional investment decision-making, that they are extra work, and that they are only about ethics. …