Majority of PE investors integrate ESG, study finds

esgOver 80% of private equity managers currently integrate ESG criteria into their investment process, a report by LGT Capital Partners has found

According to the firm, there has been “significant” progress in ESG integration across asset classes, and this is set to continue.

As ESG implementation continues to gain traction in the market, the number of private equity managers ranked ‘excellent’ or ‘good’ on ESG integration has increased by 78% since 2015, the assessment of 328 managers, including 251 private equity mangers found. 

Less than 20% of hedge fund managers made the ranking of ‘excellent and good’ in the report regarding their ESG – or environmental, social and governance – activity.

At a regional level, Europe leads the way with 81% of European managers now ranked in these categories. In Asia, 63% of managers are now ranked ‘excellent’ or ‘good’, while the US continues to lag with 43%.

Tycho Sneyers, managing partner at LGT Capital Partners, said there was significant progress in ESG integration across asset classes and that he expected this to continue.

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