Insight

Private equity’s ESG sea change

Private equity has made great strides on ESG, with a drive towards standardization, ESG as a value driver, and a shared industry voice as priorities.

Glenn Mincey

Glenn Mincey

Global & U.S. Head of Private Equity, KPMG

+1 212-954-8255

Tania Carnegie

Tania Carnegie

ESG Lead, Private Equity & Asset Management, KPMG IMPACT, KPMG US

+1 212-997-0500

In an interview with Private Equity International Magazine Glenn Mincey—Global & U.S. Head of Private Equity, and Tania Carnegie—Global and U.S. Lead, Private Equity and Asset Management, KPMG IMPACT discuss how private equity firms are focusing on ESG today and consider the evolution of ESG within the industry over the next five years.

Key interview takeaways:

  • Private equity firms are increasingly seeking robust technology platforms to capture and manage ESG data to support regulatory and investor reporting and inform investment decisions in new ways.
  • The focus now is on showing successful outcomes that tangibly demonstrate firms are better investors due to their work in this area. We need metrics that point to real impact that is identifiable and measurable.
  • ESG as a value driver is a key theme defining many of our client interactions. Private equity investors realize that ESG considerations have evolved from just risk management to value creation.
  • There is a realization that ESG requires a very specific industry focus. Many of our clients have more than 10 people operating across their firms, each aligned to a particular area of focus.
ESG has become business as usual with all sides aligned – LPs, GPs and talent – around the acknowledgement that this is the way forward.
— Glenn Mincey, global and U.S. head of Private Equity
In the last 12 months we have witnessed a sea change, with funds bringing in high-level talent to lead their ESG agendas.
— Tania Carnegie, global and U.S. lead for private equity and asset management at KPMG IMPACT