ESG, or the incorporation of environmental, social and governance risk factors, is an increasingly core part of any investment strategy. It seeks to limit the operational, financial or reputational risk that could arise from something going wrong in one of these dimensions.
We believe that creating positive climate impact, however, requires more than ESG hygiene. It requires actively investing in businesses, typically putting primary capital to work in a private equity context, whose core activities create new positive effects on the environment, be it a reduction in CO2 emission, pollution or resource consumption.