ESG, a priority for South African Private Equity firms

Published on

3 November 2023

Amended on

28/3/2024

minute(s)

According to the EY and SAVCA study, 48% of Private Equity firms in South Africa prioritize ESG criteria, ahead of talent management and product innovation. 81% have experienced ESG-related pressure from investors. The sector is asserting itself as a crucial lever for positive social and environmental impacts, with encouraging growth prospects.

Damien Hélène

This article has been automatically translated. Please excuse any inaccuracies or translation errors.

48% of South African Private Equity firms now give priority to environmental, social and governance (ESG) criteria, ahead of talent management(46%) and product range expansion(37%).

These are the findings of the latest study by EY and theSouth African Venture Capital and Private Equity Association (SAVCA).

81% of South African Private Equity players have experienced ESG-related pressure from their investors or potential investors.

AsAgence Ecofin points out, "these pressures essentially concern the areas of adapting investment strategy to meet ESG requirements, measuring portfolio performance against these requirements and improving the quality and frequency of related reporting ".

Private Equity is therefore becoming a key driver in helping companies generate positive social and environmental impacts in addition to financial returns. Private Equity players in South Africa are optimistic about the future. 67% of them expect the size of their next fund to be " larger " or even " much larger " than their last fund.

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