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Why do private equity firms pay attention to ESG?
They see that it creates value.
More than half of the PE professionals we surveyed said their organizations look at ESG in every opportunity they consider, and in every due diligence review.
We also asked what benefits they get from their ESG activities.
Most cited: brand enhancement, and competitive differentiation.
Fewer named financial outcomes like revenue growth.
Then again, it can be hard to tie ESG to financial value.
But leading firms know where to search for opportunities.
There are climate-technology ventures that need funding,
and countries that need green infrastructure.
Green incentives and tax savings add up.
And green financing can cut costs.
That’s where the industry is heading:
creating more value by making sustainability a part of every deal.
Eric Janson
Global Private Equity, Real Assets and Sovereign Funds Leader, Partner, PwC US
Tel: +1 617-834-4900