Risk, Return and ESG

Why are LPs increasingly adopting “ESG” programs with regard to their private market portfolios? Tom Rotherham of Hermes Equity Ownership Services (a division of BT Pension Scheme) and Jordan Berger of Canada’s OPTrust discuss the benefits of working with GPs to ensure that environmental, social and governance risks are considered in private equity deals.

Rotherham and Berger share real examples of how ESG programs have avoided risks and enhanced performance. As Rotherham says: “Buy the risk, manage it, get the return.”