While most private equity managers undertake investments on the premise of adding value to the companies in which they invest, they should not only consider ways to improve their portfolio company’s environmental, social and governance (ESG) or green credentials, but also ensure that their investments reduce harm in the long term.
Including ESG principles into your investment strategy is the first important step in ensuring that your investments do as little harm as possible or reduce harm in the long-term. With ESG rapidly becoming the new normal, an important next step is the mobilisation of private equity with the strategic intent to make a measurable contribution to building a better and more sustainable future for all.