ESG commitment strong but slowing
21.08.2024 – Articles
According to new figures, private equity’s ESG practices continue to improve but at a slower pace compared with previous years.
The findings come from LGT Capital Partners’ ESG Report 2024, based on 10 years of data tracking 380 alternative investment managers, of which more than 300 are private equity managers.
Ratings
It found that 73% of the private equity managers analysed achieved ESG ratings of ‘excellent’ or ‘good’, a significant improvement from 10 years ago when only 27% of these firms received this rating.
While the long term view shows a major increase in the industry’s adoption of robust ESG practices, LGT’s report noted a slow down in the percentage increases compared with recent years.
The report stated: “It can likely be attributed to the challenges of improving further on already advanced baselines and the increasing complexity of ESG.