This week we want to flag this PwC report on the state of ESG integration in global private equity. It is based on a survey of 300 GPs and LPs across the US, EU, UK, and APAC. There are lots of interesting numbers in this report (a lot of detail per asset class, per region, etc.), so we recommend a full read for anyone in that industry (or anyone trying to get an investment from that industry). But for those short in time, here are what we feel are the 7 key data points for people in Mexico:
- “LPs globally are demonstrating increased commitment to bolstering their ESG investments, with 87.5% of those surveyed planning on increasing their PM ESG investments over the coming two years…”
- “Conflicts between regional and national level regulations represent the most commonly identified challenge…”
- “…65.1% of the European LPs we surveyed stated that they have become more demanding with regards to the ESG reporting they expect to receive from their GPs as a direct consequence of this regulatory shift.”
- “Our survey results indicate that the recent SEC proposals have been largely welcomed by the US investment community…”
- “…64% of the GPs we surveyed are anticipating an increase in ESG reporting obligations from their respective LPs.” (US)
- “…81% and 73% of surveyed LPs and GPs intend to stop investing or offering non-ESG products in the coming years.”
- “Our survey results suggest a general sense of optimism within the global Asset Management community with regards to the likelihood of the ISSB succeeding in its harmonization aims.”
The survey clearly shows global funds are positioning themselves towards more and better ESG integration. While this may be more (or less) pronounced in specific asset classes, broadly speaking there is a relative consensus that ESG integration will be required in the future. This eventually is very likely to flow into other less mature geographies (such as LatAm), where PE is still not as invested in ESG yet (see our last report on this here).
So, instead of rushing into this later on, we suggest all PE players start thinking about a responsible investment policy, defining their material topics, and deciding how they will address them. We also suggest that all corporates trying to get money from PE players pay attention to how they can position their investment thesis and produce the right data for their future investors. At Miranda ESG, we would be more than happy to help figure this out.
I hope you found this interesting. As usual, if there is anything we can help you with, or if there is an ESG topic you would like to know more about, please let us know.
Best,
Marimar
CEO, Miranda ESG
Contacts at Miranda Partners
Damian Fraser
Miranda Partners
damian.fraser@miranda-partners.com
Marimar Torreblanca
Miranda-ESG
marimar.torreblanca@miranda-partners.com
Esta semana queremos destacar el informe de PwC sobre el estado de la integración de ESG en el sector de private equity a nivel global. El reporte se basó en una encuesta a 300 GPs y LPs de Estados Unidos, la Unión Europea, el Reino Unido y APAC. Hay muchos números interesantes en este informe (mucho detalle por clase de activos, por región, etc.), por lo que a cualquier persona en esa industria (o a cualquier persona que quiera inversión de estos fondos) le recomendamos leerlo completo. Pero para aquellos que tienen poco tiempo, aquí están los 7 datos clave que consideramos relevantes para las personas en México:
- “LPs globally are demonstrating increased commitment to bolstering their ESG investments, with 87.5% of those surveyed planning on increasing their PM ESG investments over the coming two years…”
- “Conflicts between regional and national level regulations represent the most commonly identified challenge…”
- “…65.1% of the European LPs we surveyed stated that they have become more demanding with regards to the ESG reporting they expect to receive from their GPs as a direct consequence of this regulatory shift.”
- “Our survey results indicate that the recent SEC proposals have been largely welcomed by the US investment community…”
- “…64% of the GPs we surveyed are anticipating an increase in ESG reporting obligations from their respective LPs.” (US)
- “…81% and 73% of surveyed LPs and GPs intend to stop investing or offering non-ESG products in the coming years.”
- “Our survey results suggest a general sense of optimism within the global Asset Management community with regards to the likelihood of the ISSB succeeding in its harmonization aims.”
La encuesta muestra claramente que los fondos globales se están posicionando hacia una integración ESG mayor y mejor. Si bien esto puede ser más (o menos) pronunciado en clases de activos específicas, en general existe un consenso relativo de que la integración ESG será necesaria en el futuro. Esto probablemente se extenderá a otras geografías menos maduras (como América Latina), donde el private equity todavía no está tan avanzado en ESG (aquí nuestro último reporte al respecto).
Por lo tanto, en lugar de hacerlo con urgencia más adelante, sugerimos que todos los participantes de private equity comiencen a pensar en una política de inversión responsable, a definir sus temas materiales y a decidir cómo abordarlos. También sugerimos que todas las empresas que quieran fondearse con private equity presten atención a cómo pueden posicionar su tesis de inversión y generar los datos que servirán a sus futuros inversionistas. En Miranda ESG, estaríamos encantados de ayudar en este proceso.
Espero que esto te haya parecido interesante. Como siempre, si hay algo en lo que pudiéramos ayudar, o si hay un tema de ESG del cual quisieras saber más, por favor háznoslo saber.
Saludos,
Marimar
CEO, Miranda ESG
Contactos en Miranda Partners
Damian Fraser
Miranda Partners
damian.fraser@miranda-partners.com
Marimar Torreblanca
Miranda-ESG
marimar.torreblanca@miranda-partners.com
