Skip to main content
Perspective:
Perspective
3 minute read

Adapting ESG in private equity markets for clarity and value

Survey shows private equity ESG adoption accelerating—and evolving

Adapting ESG in private equity markets for clarity and value
635 KB PDF

In recent years, social and environmental challenges have pushed the business world to envision value as more than purely financial. Investment decisions now regularly factor in environmental, social, and governance (ESG) effects. But as ESG has become an established feature of the investment landscape, it’s also been shaped by pressures from all sides; political polarisation, energy and industrials performance, and data and greenwashing concerns have put a damper on some investors’ initial enthusiasm. 

However, ESG isn’t going anywhere. Demand from European investors for green investments and the proliferation of ESG in due diligence and request for proposals (RFPs) have made it clear that private equity investors seeking to access capital will need to continue to weigh it in their decisions. Private equity is positioning itself with impact funds.

Getting the most from ESG

Private equity firms that know how to measure, assess, and manage ESG objectives throughout the deal lifecycle and within portfolio companies can reap tangible rewards including environmental and social impact, positive outcomes for clients and investors, increased investor satisfaction, and improved investment performance.  

For more information on how Deloitte helps organisations make progress on their journey toward long-term sustainability and value creation, visit our Sustainability and Climate site. 

Get in touch

James Chown

Deloitte - Australia
James is a partner in Deloitte's Financial Services M&A practice. He specialises in advising financial institutions and private equity funds on mergers, acquisitions and divestments. James has over 18 years experience, working in both Australia and the United States, and specialises in cross border transactions. James' experience spans the financial services industry, including the Banking & Capital Markets, Investment & Wealth Management and Insurance sectors. James also leads Deloitte's Portfolio Lead Advisory Services offering in Australia, advising financial institutions and private equity/credit funds on loan portfolio transactions and capital optimisation.
View Profile

Aaron Black

Deloitte - Australia
Aaron has 19 years’ experience in investment banking across mergers & acquisitions and equity capital markets working for Macquarie and UBS. Aaron provides advisory services to both private and public companies on mergers, acquisitions, divestments and public & private capital raising transactions. Aaron has worked across a broad range of industries including technology, financial services, mining services, infrastructure services, healthcare, consumer products, business services, retail, media, telecommunications, and manufacturing. As a senior member of Macquarie Capital for 14 years, Aaron has a strong understanding of corporate strategy, business development, M&A and positioning corporates with investors.
View Profile

Rochel Hoffman

Deloitte - Australia
Rochel leads Deloitte Australia’s ESG M&A practice, working with Private Equity and Corporate clients to embed ESG across the deal lifecycle to drive enhanced value and to ensure alignment with investor expectations. Rochel has over 10 years of ESG experience delivering ESG advisory services, including due diligence, post-deal integration, ESG strategy and disclosure development to both listed and private companies across a diverse range of sectors, including energy and resources (including renewables), infrastructure, health, technology, consumer and financial services.
View Profile

Did you find this useful?

Yes
No

Thanks for your feedback

If you would like to help improve Deloitte.com further, please complete a 3-minute survey

Recommendations

2024 investment management outlook

In 2024 investment management firms are facing a new landscape of possibilities – disruptive technologies, evolving talent models, environmental social & governance mandates, and new workplace dynamics. So how can leaders achieve desired performance outcomes? 
Perspective
5 minute read

Winning Strategies for Asset Managers

Discover the three primary strategies that the asset management industry’s winners deploy to separate from the rest of the pack.
Perspective
5 minute read

Uplifting ESG Data Management Capabilities for Investment Management

The global buy-side industry is witnessing a growing demand for ESG investing while also grappling with rising regulatory scrutiny. To translate these challenges into opportunities, investment firms need to improve their ESG data management capabilities.
Perspective
minute read