Andrew Malk and Zach Goldman are Partners at Malk Sustainability Partners (MSP), a specialty management consultancy that guides investors and businesses to leverage resource and environmental management to maximize profitability.
Many of the most recognized names in the private equity industry are currently leveraging environmental, social, and governance (ESG) tools to create financial value for their investment funds. Looking forward, nearly all of the firms surveyed expect to increase their focus on these concerns.
In fact, many funds, such as TPG Capital, KKR, and Blackstone, have already built systems specifically designed to drive cost savings from eco-efficiency initiatives while navigating an increasingly important set of social and governance considerations.
These are a few of the trends we’ve discovered and shared in ESG in Private Equity. In collaboration with Environmental Defense Fund (EDF), we conducted a survey that provides a unique look into the small yet influential universe of decision makers in the private equity sector. The report is a collection of evolving perspectives on ESG and its impact on value creation.
ESG is a term used to describe a range of investment considerations related to issues such as environmental sustainability, social equity and corporate citizenship. We have seen evidence that the private equity sector is moving rapidly through the evolutionary stages of ESG adoption. These investors are no longer asking what is ESG or why are these issues important, but how to capitalize on them.
This content was originally published on Environmental Leader.