ESG

The systematic incorporation of environmental, social, and governance considerations alongside traditional financial analysis in investment decision-making. ESG stands for environmental, social, and governance, referring to the three central factors used to measure sustainability and societal impact of a potential investment. Assessing ESG helps private equity and venture capital firms determine how a company performs on issues like climate change, DEI (diversity, equity & inclusion), board diversity, executive compensation, transparency, etc. Strong ESG performance signals responsible and ethical business practices. Considering ESG factors in the investment process aims to improve returns and align with stakeholder values. Poor ESG can indicate underlying risks. Private equity/VC firms are increasingly prioritizing ESG amid mounting pressure from LPs, regulators, and the public to invest sustainably. ESG metrics provide a more comprehensive view of an investment beyond just financials.

Blog

Other news you might be also interested in

Vahit Alili from Schroders: Harnessing Fund-of-Funds and Co-Investments for Mid-Market Private Equity Success

Vahit Alili, Senior Investment Director in Private Equity at Schroders Capital, shares his perspective on the evolving private equity landscape in the DACH region. Speaking ahead of his appearance at the 0100 DACH Conference, Vahit discusses the challenges and opportunities in 2024, his outlook for 2025, and the critical role of portfolio diversification through Fund-of-Funds (FoF) and co-investments. With insights into mid-market dynamics, the importance of specialist managers, and strategies to align investor and GP interests, this conversation offers valuable guidance for navigating the complexities of the private equity market.

Transforming Sustainability at Ardian into a Core Driver of Operational Excellence and Value Creation

Ardian has been at the forefront of integrating ESG into its investment strategies since 2008, transforming sustainability from a “soft topic” to a core driver of operational excellence and value creation. In this interview, Louise Doucet from Ardian discusses the firm’s comprehensive approach to ESG across its investment cycle, the challenges of ESG reporting in private markets, and the growing role of sustainability in valuations and exit opportunities. She also shares insights into the evolving ESG landscape, including trends in the DACH region and the future of responsible investing.

Building Europe’s Future Tech Leaders: Cipio Partners on Software Growth and Deeptech Opportunities

Roland Dennert of Cipio Partners shares his perspective on the evolving private equity landscape, from the unique growth-stage opportunities in Germany’s vibrant tech scene to the macroeconomic and ESG factors shaping investment strategies. As Europe works to close the gap with the US in growth investing, Cipio's disciplined, forward-thinking approach positions it as a key player in enabling sustainable growth and unlocking potential across software and deep-tech sectors.