1、Global Private Equity Responsible Investment Survey 2023Generating upside from ESG:Opportunities for private Private Equity Responsible Investment Survey 20232Leading PE firms have long recognised that managing ESG factors helps create value.Our new survey shows most firms agree,seeing no conflict b

2、etween ESG and returns.Here,we look at the industrys evolving approachand highlight prospects for further gains.by Eric Janson,Miriam Pozza,Leonie Schreve and Darice CaudleTen years ago,when PwC first surveyed private equity(PE)firms on their approach to environmental,social and governance(ESG)topic

3、s,risk management was their foremost concern.Now their outlook has changed.Our latest survey,of more than 150 PE houses,shows,first,that respondents overwhelmingly believe that ESG management can help create value.Some 70%place value creation among the top three drivers for their organisations ESG a

4、ctivities.Second,the survey findings indicate that it is standard practice for PE firms to consider ESG factors when sourcing opportunities,carrying out due diligence,forming post-acquisition plans and deciding on deal terms.When asked about the benefits of ESG activities,respondents shared a range

5、of views.A third set of findings suggests that PE organisations are more likely to report qualitative outcomeswhich are typically associated with value creation,including higher exit multiplesthan to report directly measurable financial impacts.More than half of respondents identify brand enhancemen

6、t,risk mitigation,competitive differentiation and client attraction as ESGs main benefits to their organisation.Less than one-fifth identify revenue growth and cost efficiency.These findings may also reflect the challenge of precisely attributing financial value to ESG considerations.Only a third of