ESG INVESTING: Reversal of Fortune

Environmental, Social and Governance

By Staff Reporters

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What Is Environmental, Social, and Governance (ESG) Investing?

Environmental, social, and governance (ESG) investing refers to a set of standards for a company’s behavior used by socially conscious investors to screen potential investments.

CITE: https://www.r2library.com/Resource

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Yet, more than 80% of private equity fund managers have stepped away from at least one deal due to ESG concerns, according to the 2023 BDO Private Capital Survey. The reasons why are complex, and point towards fund managers’ sentiment towards risk in the current economic environment.

LINK: https://medicalexecutivepost.com/2023/03/27/on-socially-responsible-investing-2/

Uncertainty around ESG regulations in the US may be leading deal makers to tread carefully, Jim Clayton, private equity advisory national leader and private equity national co-leader at BDO, told CFO Brew.

“We’re a year past when the SEC said they were going to issue reporting standards for public filers,” he said, which has created “more noise in the system.”

Companies are getting conflicting messages about when they will need to comply with regulations.

“People are nervous about what I would call ESG-intense exposed industries,” in other words, those with “heavy carbon footprints,” he said.

Link: https://medicalexecutivepost.com/2023/03/27/esg-investing-not-so-hot-anymore/

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