A recent Coller survey indicated that two-thirds of all private equity firms will make their first ESG-focused hires in the next three years.
James Peter Rubin filed this report for Karma Impact:
“The process of embedding an ESG culture… remains a work in progress, but many are now becoming advocates for responsible investment,” Adam Black, Coller head of ESG & sustainability said in the report.
The findings come as ESG — social impact, responsible investing, impact investing — principles figure more prominently in investor decisions. Total assets touched by sustainable investment strategies have mushroomed 38% to $12 trillion since 2016, according to the U.S. SIF 2018 Trends Report.
The Coller survey of 85 general partners found that nine in 10 firms have social impact policies, and three in five PE firms employ at least one ESG-focused professional. The same percentage recognize that ESG monitoring requires special skills.
Reflecting the issue’s importance, the executive committee or board oversees ESG at two in five firms instead of handing off the responsibility to less senior executives in compliance, investor relations or other functions.