85% of Investors to Prioritize Sustainability as Private Equity Accelerates Net Zero Efforts: BCG Report

The private equity (PE) industry is increasingly prioritizing sustainability in response to investor expectations and the commercial advantages of ESG initiatives, with over $8.7 trillion in assets under management. According to Boston Consulting Group, 85% of limited partners plan to emphasize sustainability in the next three years, prompting general partners and portfolio companies to adopt stronger sustainability frameworks. However, only 22% of PE-owned companies currently have decarbonization strategies, though those that do are reducing emissions faster than public firms. The sector is also making strides in gender diversity and job creation, with 77% of PE-backed firms featuring women in C-suites. As the industry matures, better data and transparency are expected to further enhance its role in driving sustainable change and competitive advantage. Resources: https://esgnews.com/85-of-investors-to-prioritize-sustainability-as-private-equity-accelerates-net-zero-efforts-bcg-report/