Why should private equity take lead in sustainability?

A huge opportunity for private equity—and for society—now exists.

Three forces are pushing ESG in the industry. ESG is becoming more important to limited partners and their beneficiaries, many LPs and GPs believe that ESG will be essential for private equity to continue delivering its historically high returns, and portfolio companies increasing recognize the importance of ESG issues.

As PE-owned companies operate on a longer time horizon, they are relatively capable of making investments without the glare of quarterly earnings calls.