In the wake of COVID-19, LPs are increasingly viewing ESG as a value driver, rather than merely a risk management tool. As a result, many LPs now maintain active contact with GPs to monitor the implementation of ESG policies.
Capstone surveyed 140 global LPs for its 2021 report ESG Trends & Considerations to determine their attitudes to, and priorities regarding, ESG. It found that a material proportion of LPs (27% globally) were willing to trade lower performance for excellent ESG credentials. European investors continue to lead the way on ESG, but LPs in North America and Asia are catching up and ESG implementation is now accelerating in all regions. For European LPs, environmental concerns are most prominent. Social considerations are the priority for LPs in North America. In Asia-Pacific, governance criteria are the key focus.
For more information, please contact: Tiffany Howard (thoward@csplp.com)
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