The impact investing market has experienced remarkable growth, with some studies suggesting its value reached approximately $1.164 Tn in 2023
Sustainable investing integrates ESG factors into the investment process to enhance long-term value creation
Private equity firms are increasingly recognising the importance of both approaches in their portfolios
In the evolving landscape of finance, the distinctions between impact investing and sustainable investing are becoming increasingly significant, particularly for private equity firms navigating the Environmental, Social and Governance (ESG) criteria.
Though frequently conflated, diverge significantly in their objectives and methodologies. While both share the ESG framework as a foundational layer, their applications within private equity reveal stark contrasts.