Skip to main content
MENU
Subscribe
  • Sign Up Free
  • LOGIN
  • Subscribe
  • Topics
    • Alternatives
    • Consultants
    • Courts
    • Defined Contribution
    • ESG
    • ETFs
    • Face to Face
    • Hedge Funds
    • Industry Voices
    • Investing
    • Money Management
    • Partner Content
    • Pension Funds
    • Private Equity
    • Real Estate
    • Regulation
    • SECURE 2.0
    • Special Reports
    • Washington
    • White Papers
  • Rankings & Awards
    • 1,000 Largest Retirement Plans
    • Top-Performing Managers
    • Largest Money Managers
    • DC Money Managers
    • DC Record Keepers
    • Largest Hedge Fund Managers
    • World's Largest Retirement Funds
    • Best Places to Work in Money Management
    • Excellence & Innovation Awards
    • WPS Innovation Awards
    • Eddy Awards
  • ETFs
    • Latest ETF News
    • Fund Screener
    • Education Center
    • Equities
    • Fixed Income
    • Commodities
    • Actively Managed
    • Alternatives
    • ESG Rated
  • ESG
    • Latest ESG News
    • The Institutional Investor’s Guide to ESG Investing
    • ESG Sustainability - Gaining Momentum
    • ESG Investing | Industry Brief
    • Innovation in ESG Investing
    • 2023 ESG Investing Conference
    • ESG Rated ETFs
  • Defined Contribution
    • Latest DC News
    • The Plan Sponsor's Guide to Retirement Income
    • DC Money Manager Rankings
    • DC Record Keeper Rankings
    • Innovations in DC
    • Trends in DC: Focus on Retirement Income
    • 2023 Defined Contribution East Conference
  • Searches & Hires
    • Latest Searches & Hires News
    • Searches & Hires Database
    • RFPs
  • Research Center
    • The P&I Research Center
    • Earnings Tracker
    • Endowment Returns Tracker
    • Corporate Pension Contribution Tracker
    • Pension Fund Returns Tracker
    • Pension Risk Transfer Database
  • Careers
  • Events
    • View All Conferences
    • View All Webinars
    • 2023 Canadian Pension Risk Strategies
    • 2023 Retirement Income
Breadcrumb
  1. Home
  2. ESG
October 11, 2021 03:38 PM

Private market ESG assets set to take off – PwC

Rob Kozlowski
  • Tweet
  • Share
  • Share
  • Email
  • More
    Reprints Print
    ESG_Watering_Plant_i.jpg
    Getty Images/iStockphoto

    Environmental, social and governance assets among private markets managers in Europe could rise to €1.2 trillion ($1.39 trillion) by 2025, according to a report from PwC Luxembourg.

    For the report, "EU Private Markets: ESG Reboot," PwC Luxembourg surveyed 200 general partners and 200 limited partners representing €46 trillion in global assets under management.

    The report predicts ESG assets will account for 27.2% to 42.4% of the likely private markets AUM in Europe, up from 14.8% of a total of €1.7 trillion AUM in 2020, representing about €253 billion.

    "In this fast-evolving landscape, general partners will be increasingly required to adapt along with the winds of change, positioning ESG at the center of their investment, risk mitigation and alpha creation strategies," said Will Jackson-Moore, global private equity, real assets and sovereign funds leader at PwC Luxembourg, in a news release announcing the report. "Those that successfully harness ESG's sheer value creation and protection potential stand to secure — or even enhance — their competitive positioning."

    The report says the forecast is driven by four catalysts that are placing ESG and sustainability at the forefront of private markets investing: Shifting societal values, changing investor behavior, policy shifts and regulatory changes, and ESG's value creation and risk mitigation power.

    When asked what their main drivers are to invest in ESG, 41% of survey respondents each said risk management and corporate values, and 35% said risk-adjusted returns. Multiple answers were accepted.

    Also, 100% of limited partners surveyed that do not currently invest in ESG in private markets said they plan to do so in the next 24 months.

    Of those who currently invest in ESG funds, 63% said they plan to increase their allocations to ESG funds in the next 24 months.

    Those limited partners also plan to direct more resources to social and environmental concerns in the next 24 months.

    When asked which aspect of ESG currently has the highest weighting, 49% said governance, 31% said all were equally weighted, 13% said social and 7% said environmental. When asked what they believe will be the most prevalent in the next 24 months, 36% said governance, 30% said equal weighting, 20% said social and 13% said environmental.

    The report also notes: "As regulators and society increasingly urge LPs to incorporate sustainability considerations within their investment policies and operations — and as these LPs increasingly awaken to ESG's value creation and risk mitigation potential — GPs will likely see the demand for their non-ESG funds slow considerably."

    Related Article
    Sustainable investing becoming market standard, FTSE Russell says
    Gensler discusses ESG, cryptocurrency at House committee hearing
    Sustainable investment fund assets up but lagging goal, IMF says
    Recommended for You
    ONLINE_180219969_AR_0_JJIIJJLGUNRU.jpg
    Asset managers have room for improvement on climate, biodiversity – ShareAction
    ONLINE_190119877_AR_0_TWWCTXGUTENY.jpg
    Avon Pension Fund moves $871 million into equities aligned with Paris Agreement
    Solar panel farm
    Renewable energy set for record growth in 2023 and 2024 – IEA report
    Infrastructure Debt Delivers Reliable Returns
    Sponsored Content: Infrastructure Debt Delivers Reliable Returns

    Reader Poll

    May 1, 2023
     
    SEE MORE POLLS >
    Sponsored
    White Papers
    Middle market credit: We’re gonna need a bigger boat
    Alternative Credit: Differences and Opportunities in CLOs and Credit Risk Shari…
    Fixed Income is Attractive, but Beware of "Fake" Yield
    Counting on a Crisis: A Catalyst for Investment Innovation?
    A Strategic Allocator's Guide to Productivity and Profits
    Research for Institutional Money Management
    View More
    Sponsored Content
    Partner Content
    The Industrialization of ESG Investment
    For institutional investors, ETFs can make meeting liquidity needs easier
    Gold: the most effective commodity investment
    2021 Investment Outlook | Investing Beyond the Pandemic: A Reset for Portfolios
    Ten ways retirement plan professionals add value to plan sponsors
    Gold: an efficient hedge
    View More
    E-MAIL NEWSLETTERS

    Sign up and get the best of News delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    Subscribe Today
    December 12, 2022 page one

    Get access to the news, research and analysis of events affecting the retirement and institutional money management businesses from a worldwide network of reporters and editors.

    Subscribe
    Connect With Us
    • RSS
    • Twitter
    • Facebook
    • LinkedIn

    Our Mission

    To consistently deliver news, research and analysis to the executives who manage the flow of funds in the institutional investment market.

    About Us

    Main Office
    685 Third Avenue
    Tenth Floor
    New York, NY 10017-4036

    Chicago Office
    130 E. Randolph St.
    Suite 3200
    Chicago, IL 60601

    Contact Us

    Careers at Crain

    About Pensions & Investments

     

    Advertising
    • Media Kit
    • P&I Content Solutions
    • P&I Careers | Post a Job
    • Reprints & Permissions
    Resources
    • Subscribe
    • Newsletters
    • FAQ
    • P&I Research Center
    • Site map
    • Staff Directory
    Legal
    • Privacy Policy
    • Terms and Conditions
    • Privacy Request
    Pensions & Investments
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • Topics
      • Alternatives
      • Consultants
      • Courts
      • Defined Contribution
      • ESG
      • ETFs
      • Face to Face
      • Hedge Funds
      • Industry Voices
      • Investing
      • Money Management
      • Partner Content
      • Pension Funds
      • Private Equity
      • Real Estate
      • Regulation
      • SECURE 2.0
      • Special Reports
      • Washington
      • White Papers
    • Rankings & Awards
      • 1,000 Largest Retirement Plans
      • Top-Performing Managers
      • Largest Money Managers
      • DC Money Managers
      • DC Record Keepers
      • Largest Hedge Fund Managers
      • World's Largest Retirement Funds
      • Best Places to Work in Money Management
      • Excellence & Innovation Awards
      • WPS Innovation Awards
      • Eddy Awards
    • ETFs
      • Latest ETF News
      • Fund Screener
      • Education Center
      • Equities
      • Fixed Income
      • Commodities
      • Actively Managed
      • Alternatives
      • ESG Rated
    • ESG
      • Latest ESG News
      • The Institutional Investor’s Guide to ESG Investing
      • ESG Sustainability - Gaining Momentum
      • ESG Investing | Industry Brief
      • Innovation in ESG Investing
      • 2023 ESG Investing Conference
      • ESG Rated ETFs
    • Defined Contribution
      • Latest DC News
      • The Plan Sponsor's Guide to Retirement Income
      • DC Money Manager Rankings
      • DC Record Keeper Rankings
      • Innovations in DC
      • Trends in DC: Focus on Retirement Income
      • 2023 Defined Contribution East Conference
    • Searches & Hires
      • Latest Searches & Hires News
      • Searches & Hires Database
      • RFPs
    • Research Center
      • The P&I Research Center
      • Earnings Tracker
      • Endowment Returns Tracker
      • Corporate Pension Contribution Tracker
      • Pension Fund Returns Tracker
      • Pension Risk Transfer Database
    • Careers
    • Events
      • View All Conferences
      • View All Webinars
      • 2023 Canadian Pension Risk Strategies
      • 2023 Retirement Income