How Institutional Investors Can Up Their Sustainability Game in Private Markets.
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.
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Tensie Whelan is a Clinical Professor of Business and Society and Director of the Center for Sustainable Business.