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
This article covers the continuing growth of corporate sustainability and the frameworks supporting it.
California climate laws SB 253 and 261, TCFD, SBTi and more in the Danesmead Advisory August 2025 newsletter.
In late August 2025, the California Air Resources Board (CARB) proposed important updates to SB 253 and SB 261, with implications for which companies are in scope and what they’ll need to do to comply.
2026 PRI reporting is changing – it’s new, and it’s mandatory for all signatories. Read more about the new reporting framework and how it will affect signatories.
CSRD simplification, UK Taxonomy, SBTi, and more in the Danesmead Advisory July 2025 newsletter.
Summary of the new EU Voluntary Sustainability Reporting Standard for SMEs (VSME).
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.