The ESG (Environmental, Social, Governance) criteria include 70 percent of institutions providing capital to private equity funds in its investment policy, according to a study by the consulting company Bain & Company. 93 percent of investors entrusting their money to private equity funds would forego investment if they had doubts about ESG.

"ESG is not only a matter of image or fashion, but an increasingly important factor in making investment decisions. Moreover, the ambition of investors is not only to protect portfolio companies from the risk of not meeting the ESG criteria, but also to use the strategy in this area to stand out. compared to competitors, customers and employees. This, in turn, has a direct impact on the increase in the value of investments. It also means that companies that do not meet the ESG criteria will have more and more problems with obtaining financing," Paweł Szreder, junior partner of Bain & Company Poland / CEE, assessed.

Private equity funds are playing an increasingly important role in the mergers and acquisitions market, currently with record investment funds of $3.4 trillion. Taking into account the declarations of institutions directing funds to these funds, as well as the growing pressure from regulators, governments and financial institutions, it can be assumed that the majority of this money will go to companies that take sustainable development strategies seriously.

(Inwestycje.pl)