Creating Value through Sustainability in Private Markets

Global private market investors are in a period of great risk – and great opportunity. Both asset owners and private-equity funds are facing pressure to make real progress on environmental, social and governance (ESG) issues. This presents not only financial, reputational and regulatory risks to be navigated, but also prospects for long-term value creation. With its structural advantages due to a full ownership governance model and a longer-term horizon, private equity can lead the sustainable finance revolution.

This white paper summarizes the actions private-equity investors are beginning to take to create value through sustainability. It identifies five key organizational changes the industry must make along with the barriers and unlocks for private-equity engagement in “grey-to-green” transformation. Finally, it presents a roadmap of five “Monday morning priorities” for investors looking to chart their own sustainability success path.