ESG Considerations For Private Equity And Venture Capital Fund Managers

Introduction

Interest of the financial services industry in environmental, social and governance (ESG) matters has surged in recent years driven mainly by rapid regulatory developments and the rising investors' awareness about the climate change and sustainability aspects of their investments. The EU Commission was particularly eager to become a trend setter in this field by creating the first comprehensive regulatory framework on sustainable finance that will apply to the majority of financial institutions operating within the EU Single Market. In the centre of the scope of application of this new framework are asset managers that are seen as one of the most suitable financial intermediaries able to ensure channelling of additional investments towards financing of sustainable economic activities.