March 9, 2021
Why private equity firms should be embedding ESG in their portfolio
In the current private equity (PE) environment, there is an emphasis on purpose and transparency. This is being driven by a combination of things: demand from limited partners (LPs), the dynamics of origination, regulatory developments, and being able to attract the best talent. There is also social pressure and the question of PE’s license to operate. The PE industry is under greater scrutiny than ever before, and PE firms must do a better job of capturing and tracking the value they are creating and the impact of their activities. With ESG moving up the agenda, PE managers need to embed it in their long-term value narrative. An EY article provides details.