Increase in designated ESG managers at PE firms
According to Acuity Knowledge Partners’ 2023 Global Private Markets Outlook, just under 69% of PE firms surveyed have a dedicated ESG professional within their organisation.
In relation to this, 63% of firms reported they have an internal ESG committee that oversees portfolio performance, while 60% of firms publish ESG, CSR or sustainability reports.
These figures are an increase from last year’s survey, demonstrating a rise in GP commitments to ESG and sustainability.
The survey was based on respondents from a range of strategies (predominantly buyout, followed by VC, infrastructure, real estate, private debt, and fund-of-funds), with headquarters across the globe. Most firms surveyed had AUM of $150bn or more (32%).
While there is an upward trend in ESG-related commitments, the report found the establishment of ESG tracking processes remains a significant challenge.
Spoilt for choice
The most popular ESG framework globally is the UN PRI (42%), while the Task Force on Climate-Related Financial Disclosures (TCFD) and SASB Alliance have regional dominance in North America, the UK and Asia, with the TCFD proving more popular, according to the survey results.
Elsewhere in Europe, the UN Global Compact and the Global Reporting Initiative are preferred, both scoring 18%.