Older and wiser: is responsible investment coming of age?

Private Equity Responsible Investment Survey 2019

Responsible investment - the management of environmental, social and governance (ESG) issues - is an increasingly significant consideration for both private equity houses (general partners - GPs) and investors (limited partners - LPs). While responsible investment may only be at the ‘young adult’ stage of development, there are encouraging signs of increasing maturity.

The results from our Private Equity Responsible Investment Survey paint a positive picture of rising responsible investment that is starting to come of age in terms of driving sustainable business practice. The survey shows that private equity houses and LPs, on a quest of driving genuine change, are taking their responsibility of supporting sustainable development seriously. This is especially important as their role in global capital markets increases.

The 162 PE firms surveyed show positive signs of a maturing attitude towards responsible investment. Respondents have already adopted or are currently developing responsible investment policies, with a vast majority either currently using or developing KPIs to track, measure and report on the progress of their policies.

However the risk of ‘impact-washing’ is still present, which makes it necessary for investors and PE leaders to continue accelerating their efforts to influence responsible investment behaviour through demanding more robust and granular reporting around ESG matters.
 

Is responsible investment a young adult?

"This is a really encouraging survey that suggests responsible investment is starting to come of age in terms of driving sustainable business practice. The private equity sector has a vital role to play in supporting sustainable development: the survey highlights that private equity houses and LP's are taking that responsibility seriously and driving genuine change. That is especially important as their role in global capital markets increases."

Jayne Mammatt, Partner Sustainability and Climate Change, PwC South Africa

Contact us

Jayne Mammatt

Jayne Mammatt

Partner, PwC South Africa

Tel: +27 (0) 11 797 4128

Chantal van der Watt

Chantal van der Watt

Senior Manager, PwC South Africa

Tel: +27 (0) 11 797 5541

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