What does the private equity and venture capital industry do to meet the rising sustainability agenda?
A sustainable business is one that is capable of continuing into the future. Social and environmental factors have a fundamental impact on the sustainability of a particular business. Some within the industry are actively targeting investment opportunities arising from social and environmental shifts. For example, new types of clean technology can make more efficient use of natural resources, water and renewable energy and so on. The industry as a whole is well-positioned to proactively embed social and environmental analysis into investment decisions through extensive due diligence, its medium- to long-term focus, its active engagement with its portfolio companies and its focus on growth and adding value. With companies eager to trumpet their green credentials, private equity and venture capital will only enhance their portfolio companies by aligning their business strategy to this global trend.
