Video: LPs, GPs embrace ESG initiatives

Executives from Carlyle, APG, Doughty Hanson, Robeco and the EDF spoke to PEO about issues including how to interpret the 'S' in ESG.

PEI’s Responsible Investment Forum, held last week in London, underscored the rapidly growing momentum now behind the implementation of environmental, social and governance best practices in private equity. But it also flagged the many challenges facing GPs and LPs in pursuing ESG-related goals.

PEO spoke with a number of industry figures on the conference's sidelines to learn about the obstacles and opportunities ESG implementation present.

Adam Black, head of sustainability for European mid-market firm Doughty Hanson, discusses the “S” in ESG and its challenges, given its inherent subjectivity and implications at the fund level, as well as for portfolio companies.

Andrew Musters
, global head of private equity for Rabobank's Robeco Private Equity and SAM Private Equity divisions, says ESG-savvy funds are producing above-average returns

Tom Murray
, head of the corporate partnership group for environmental organisation the Environmental Defense Fund, discusses EDF's partnership programmes with KKR and Carlyle, dismissing any suggestions of “greenwashing”. 

Andrew Marino, a principal at The Carlyle Group focused on US industrial buyouts, says ESG initiatives are simply bottom line-enhancing best practices for portfolio companies in emerging and developed markets.

Rob Lake, head of sustainability for Netherlands-based pension investment giant APG Asset Management, explains why LPs are increasingly likely to expect GPs to adhere to a responsible investment framework.