More than half (53%) of private equity investors from Central Europe have decided to implement investment strategies that take ESG into account, according to a Deloitte study. This is 20 percentage points. more compared to the previous edition of the survey.
“In recent months, we have observed a positive trend, confirming the growing importance of ESG factors in business for private equity market participants. This is due to, inter alia, the growing number of legal regulations, such as the obligation to report on sustainable development issues, and the attitude of the fund’s stakeholders expecting involvement in environmental issues. and social,” said Iwona Pichola, partner & leader of the sustainable development team in Poland and Central Europe at Deloitte.
Four out of ten respondents treat ESG as a way to reduce investment risk, which in the future may also help to increase the attractiveness of their investments. For 37% of respondents, the implementation of factors related to environmental protection, social issues and corporate governance is primarily a strategy for creating the value of portfolio companies. At the same time, nearly a quarter of the survey participants have still not taken steps to include ESG in their strategies, although 14% of respondents admitted that they are planning a turn in this direction in the coming years (5 percentage points more than in the previous edition of the survey).
Since 2003, the CE PE Confidence Survey has been monitoring the changing mood of investors in Central Europe every 6 months. The current edition focuses on their expectations covering the period from June 2022 to December 2022. The PE Confidence Index is calculated on the basis of responses received from PE specialists focused on Central Europe.
Source: Deloitte and ISBnews
