This report provides crucial insights into the evolving landscape of ESG and sustainability-related regulations, practices and challenges facing the private equity industry in Asia, and tracks the ESG and sustainability journeys of private equity (PE) fund managers.
With global attention turning to pressing issues such as climate risk, human rights and diversity and inclusion, PE's role in growing businesses is now being reimagined to incorporate environmental, social and governance (ESG) factors and broader concepts of sustainability. This trend is creating new regulations, shifting stakeholder preferences and highlighting opportunities for value creation that are changing the face of the industry.
Key insights from the Report include:
- Hong Kong and Singapore regulators have taken the lead in Asia in developing detailed requirements for PE managers on issues relating to climate change and the environment.
- ESG integration among Asian PE managers may benefit from more structured stakeholder engagement with LPs to align with their sustainability priorities, as well as more capacity building to support value creation efforts at the portfolio company level.
- While many Asian PE managers are taking significant steps to integrate ESG issues into the investment process, fewer have developed holistic sustainability strategies and incorporated related concepts into their branding and communications.