Research by Bain & Company and EcoVadis indicates that positive ESG outcomes are a trait of successful companies.
"When it comes to environmental, social, and governance (ESG) issues, private equity executives are navigating a crosscurrent of pressures. Some limited partners and stakeholders are pushing to embed various aspects of sustainability into investment decisions and portfolio company management, while other stakeholders question its usefulness. The investment policies of 70% of the limited partners surveyed by Bain & Company and the Institutional Limited Partners Association in 2021 included an ESG approach. All of this adds urgency to a complex question:
Do ESG efforts create value? In search of an answer, Bain worked with EcoVadis to assess, for the first time, how ESG activities impact the 100,000 companies tracked by EcoVadis, 80% of which are private. (Bain has an investment in EcoVadis, a leading supplier of business sustainability ratings.)"
