Only a few years ago the acronym ESG (environmental, social and governance) would have meant very little to most private equity practitioners. Today the reverse holds true with ESG firmly established in the lexicon of industry terms. ESG is now an established part of day-to-day working life for private equity firms and the funds and companies they invest in around the world.
As one of the first private equity practitioners to sign the Principles for Responsible Investment (PRI) we are convinced that sustainable investment practices help drive long-term value creation for our clients, employees, and society at large.
We also believe that private equity is the best method of delivering ESG-influence changes to underlying companies and investments. Increasingly investors in private equity have come to recognize the importance of ESG too. They have come to recognize that actively managing sustainable investments can reduce risk and may increase performance potential.