Study Finds Addressing ESG Risks is Linked to Improved Stock Market Performance
Environmental, Social, and Governance (ESG) strategies can greatly enhance value for private equity funds when implemented effectively. A recent study has found that shares of private equity funds publicly listed on exchanges tend to perform better if the companies had low ESG risk scores, underscoring the financial benefits of strong ESG management. The study, conducted by A&M, analyzed data obtained on 16 listed firms, which collectively managed about 1,800 portfolio investments and held roughly $6.3 trillion in assets under management. Among these firms were some of the largest private market companies in the world, including BlackRock, Apollo, Ares, KKR, and…