Private Equity sees ESG as a strategic value driver, but climate risk exposure requires greater scrutiny, finds PwC survey


  • ESG is moving up the board agenda, with 56% of private equity firms saying it is discussed more than once a year, compared with 35% saying the same in 2019
  • More than half (56%) of respondents have turned down a potential investment or refused to enter into an agreement on ESG grounds

  • More than half (56%) of respondents have turned down a potential investment or refused to enter into an agreement on ESG grounds

London, 12 May 2021 – The management of environmental, social and governance (ESG) issues is moving up the board agenda for private equity, however climate risk exposure requires greater scrutiny, according to a new survey released by PwC.

The Private Equity Responsible Investment Survey 2021 draws upon the views of 209 respondents from 35 countries and territories, including 198 PE houses. 

It finds that, compared with 2019, there is a shift from 35% to 56% of respondents stating that ESG features in board meetings more than once a year.

ESG factors are now routinely evaluated by private equity firms when making investment decisions. Three quarters (72%) of respondents always screen target companies for ESG risks and opportunities at the pre-acquisition stage, and more than half (56%) have turned down a potential investment or refused to enter into an agreement on ESG grounds. 

The 2021 survey finds that nearly 95% are concerned about specific governance issues - business ethics, corporate values and culture; prevention of bribery and corruption; and cyber and data security.

However, on issues that are fast becoming business-defining such as net zero, climate risk, biodiversity and emerging technologies, there is a significant gap between those who express concern and those who act.

91% consider climate risk within a portfolio as a concern, yet 47% have not undertaken any work around understanding the climate risk exposure of the portfolio. More than half stated they intend to in the next year. With respect to due diligence, the survey found that only 36% consider climate risk at this stage. 

Will Jackson-Moore, Global Private Equity, Real Assets and Sovereign Funds Leader, PwC UK, said: “Over recent years PE firms have radically reassessed the importance and value of ESG to their business. The attitude and approach of PE firms has matured. ESG factors are reshaping the global economic landscape and will undoubtedly impact the investment success of PE in the coming years. Understanding both the big picture and specific portfolio ESG risks and opportunities will be key to delivering sustainable value creation.” 

66% of respondents ranked value creation as one of their top three drivers of responsible investment and ESG activity, followed by corporate values (52%) and investor pressure (41%). Private equity is embracing a more proactive approach to ESG, in 2019 risk management was the biggest driver for activity.

When it comes to social issues, such as diversity and inclusion, 92% of respondents consider it a concern. Yet less than half (46%) have set some form of gender and ethnic or racial diversity targets. Encouragingly, of those that have set targets, 77% said that diversity is a core value for the organization.

Will Jackson-Moore, Global Private Equity, Real Assets and Sovereign Funds Leader,  PwC UK, continued: “Like all industries, private equity needs to adapt in order to meet the societal and economic challenges of the day, and recruiting the right talent is crucial in this regard. This means hiring for specific ESG expertise and, in general, more diverse teams — in terms of gender, ethnicity, and age, but also socioeconomic background and training.”


Notes to editors:

PwC’s Private Equity Responsible Investment Survey 2021 is the fifth edition of the survey, following previous editions in 2019, 2016, 2015 and 2013. It is available to read here:

PwC carried out the survey in 2020 through an online questionnaire. To track the simultaneous maturity of responsible investment in both stakeholder groups, we surveyed Limited Partners and General Partners together. We received responses from 209 participants, including 198 GPs and 41 LPs (30 respondents were both GPs and LPs) from 35 countries and territories, making it our largest collective sample to date.

The survey asked many of the same questions we have asked our General Partners and Limited Partners in previous surveys, to allow for comparison over time. It also included questions on new thematic areas, like sustainable value creation.


Contact us

Neil Wilson

Global Corporate Affairs and Communications Manager, PwC United Kingdom

(+44) 748 340 7462


About PwC: At PwC, our purpose is to build trust in society and solve important problems. We’re a network of firms in 152 countries with over 327,000 people who are committed to delivering quality in assurance, advisory and tax services. Find out more and tell us what matters to you by visiting us at

PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see for further details.

© 2021 PwC. All rights reserved.

Contact us

Mike Davies

Mike Davies

Director, Global Corporate Affairs and Communications, PwC United Kingdom

Tel: +44 7803 974136

David Faggard

David Faggard

Global Corporate Affairs & Communications, Senior Manager, PwC United States

Follow us