Explore how the private debt market is embracing ESG as a strategic lever for risk control and value creation.
Private markets have seen ESG considerations evolve from a peripheral interest into a defining force. No longer optional, ESG integration is increasingly recognized as essential for value creation, risk mitigation, and maintaining the license to operate. Driven by regulatory pressure, shifting societal expectations and growing investor demand, momentum continues to build. In 2024, ESG assets under management in private markets surpassed USD 1 trillion - with Europe accounting for 70% of the global market. Historically viewed as a laggard in ESG integration, private debt is rapidly catching up. According to Preqin’s June 2024 Investor Survey, half of investors have an ESG investment policy in place for private debt, or plan to have one within the next twelve months.
