Private equity firms cannot afford to ignore the groundswell for Environmental, Social, and Corporate Governance (ESG) considerations. Investors' demands for information about investments, combined with new regulations, are adding to the pressure on sponsors not only to be seen to do the right thing , but also to actually do, and to demonstrate that they do, the right thing. While sponsors are increasingly embracing the trend, many ESG policies and practices (both of investors and sponsors) remain a work in progress, as investors get to grips with the themes that really matter to them while continuing to seek ways of measuring relative impact and distinguishing ESG from adjacent themes such as a corporate social responsibility (CSR).

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