Environmental, social and governance programs are a growing force in the private equity industry. Over the past few years, PitchBook has carried out a survey of industry professionals to assess ESG and related topics through the lens of several metrics. The full report can be found here, and for a brief snapshot of its highlights, watch the video above or scan the images below.
Since our first survey in 2012, the number of respondents currently developing an ESG program has increased from 8% to 20%. This shift has largely been driven by European GPs, which, at 69%, are more heavily involved in ESG issues than North American GPs, at 56%.
When asked what factors drive ESG efforts, 71% of GPs said LPs were a contributing factor; this surpasses environmental and social factors, the biggest driver for ESG programs in the 2013 survey.
This trend also holds true from the LP perspective. We found that 69% of LPs consider ESG issues to be important, very important or essential when evaluating investments in GPs—again, with a strong interest coming from Europe. This is certainly something to look out for as 2015 progresses.