What is the Role of ESG in Private Equity Value Creation?
Consideration of ESG factors is not new to private equity (PE) but whereas in the past firms predominantly integrated ESG factors from a risk management perspective, ESG is now widely seen for its potential to drive value creation.
From pre-investment to exit, there are opportunities for PE firms to integrate ESG factors across the investment lifecycle, helping to identify and mitigate key risks, identify opportunities for growth, access new markets, enhance efficiency in business operations, and maximise financial returns, and ultimately, exit value.
Read our article explaining 3 key ways integrating ESG into your strategy can create value:
Improving brand, reputation, and employee retention
Cutting costs and increasing efficiencies
Managing regulatory risks
And learn how to provide support to portfolio companies to help them integrate ESG and maximise value creation.
Read our article on ESG in PE value creation here: What is the role of ESG in private equity value creation? - Private Equity Wire
Further Reading
Despite geopolitical uncertainty and shifting regulatory landscapes, institutional investors remain firmly committed to sustainability, according to recent insights from BNP Paribas and J.P. Morgan.
Changes to SFDR, the future of sustainable investment, greenwashing and more in the Danesmead Advisory June 2025 newsletter.
Summary of the UK government’s consultation which asks the financial services industry for views on its proposed requirements for climate-related transition plans.
UK releases draft versions of the ISSB sustainability standards including 6 amendments.
Summary of changes to approach and requirements under the revised UK Stewardship Code 2026.
Ongoing debate over CSRD, updates to SFDR and SDR, trends in sustainable investment and more in the Danesmead Advisory May 2025 newsletter.
Mandatory GHG reporting, NYC pension funds demand climate transition plans and data from managers, widespread support for climate action and more in the Danesmead Advisory April 2025 newsletter.
Summary of requirements under the new PRI Pathways reporting system for responsible investment.
Summary of the Australian Sustainability Reporting Standards (ASRS) including key requirements, timings, and interoperability with other standards.
Danesmead ESG becomes Danesmead Advisory, SB 253 & SB 261 reporting, and more in the Danesmead Advisory March 2025 newsletter.