In its latest report, Pitchbook explores how sustainable investment is defined and carried out in the private market, and discovered there are different schools of thought on ESG investing.
John Gabbert, Pitchbook Founder and CEO, says it found there are three approaches to ESG investing - ‘purist’, ‘pragmatist’, and ‘pluralist’.
“This can lead to very different-looking portfolios in private equity, compared to venture capitalism,” he says. “Where advocates for one approach might see a legitimate sustainable investment program, sceptics might see greenwashing.”
The main areas of differences in the three approaches concern the willingness, or otherwise, to invest in companies in high-risk ESG industries such as oil, coal, and gas, as well as medium-risk ones, such as food product manufacturing and textile production.
Gabbert says understanding these differing ESG philosophies and their implications “will reduce confusion over why legitimate ESG programs can result in such different-looking portfolios”.
Read the full article at: supplychaindigital.com
About the Author
Follow on Twitter Follow on Linkedin Visit Website More Content by EcoVadis EN
