As the 2024 Amundi-CREATE report highlights, the private markets asset class is particularly suitable for responsible investing. This article explores how an investor in private assets, such as Amundi Alpha Associates, can approach and refine responsible investment capabilities, as well as the practical steps taken to integrate ESG factors into their portfolio monitoring processes.
Today, investors rightly expect to receive transparent, clear, and comprehensive reporting on the Environmental, Social, and Governance (ESG) aspects of their portfolio. To meet these expectations, proactive engagement with portfolio fund managers is essential to steer their sustainability processes and drive meaningful and tangible change. The alternatives data provider Preqin indicated in their 2024 ESG in Alternatives report that 60% of investors would have or have turned down an otherwise attractive investment over concerns about ESG.
Meanwhile, more than 8,300 companies representing all sectors of the economy, including nearly 600 financial institutions representing USD 130 trillion in assets under management, have committed to net-zero targets under the UN’s Race to Zero initiative, reflecting a significant shift in corporate accountability. Institutional investors, however, bear an even greater responsibility—not just to demand high ESG standards from their investments, but to lead by example in driving sustainable progress at scale.
You can now read the full whitepaper at the link below
