How Institutional Investors Can Up Their Sustainability Game in Private Markets.

Tensie Whelan

By Tensie Whelan and Jessica Weiss

Institutional investors – aka, limited 0artners, or LPs – are increasingly integrating sustainability into their investment processes for private markets.

That requires managing a variety of issues including fiduciary duty, risk compliance and reporting, value creation strategies, and ongoing performance management – all while juggling different frameworks, performance metrics, and reporting metrics.

Our research into private equity’s sustainability performance finds that many private market investors focus on ESG and sustainability as a simple compliance or risk mitigation exercise, leaving value creation opportunities unfulfilled. (A smaller number have developed sophisticated approaches).

Read the full ImpactAlpha article.
Tensie Whelan is a Clinical Professor of Business and Society and Director of the Center for Sustainable Business.