Fiona Frick: The ESG advantage of private equity

E and S often missing

As the CEO of an asset manager running both equity and private equity funds alongside each other for almost 30 years, it has been interesting to see how ESG and impact investing has developed in both sectors.

There is no doubt listed companies have historically been ahead of private equity-backed companies when it comes to ESG and this shows in the focus the topic gets when listed companies report. On earnings calls, for example, more than 20% of listed companies now highlight ESG, up from just 1% in 2005. ESG data is also more widely available, with listed companies reporting on ESG matters at least annually. Private equity usually focuses on good governance - that's part of the way it generates value - but the ‘E' and ‘S' elements have often been missing. Many small companies don't even hav...