Private capital managers “strongest advocates for ESG”
Private capital managers are deepening their involvement in ESG and sustainable investing, as they recognise the opportunities around the shift to a low-carbon economy.
BNP Paribas’ ESG Survey 2025 polled 420 asset owners, asset managers and private capital firms across 29 countries, representing an estimated $33.8tn (£25tn) in assets under management.
ESG has become politically contentious in recent years, amid declining popularity in the US and its perceived alignment with left-wing policies.
Despite this, 87 per cent of respondents said their ESG and sustainability objectives remain unchanged, while 85 per cent now integrate sustainability-related criteria into their investment decisions.
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The report noted the emergence of private capital managers in sustainable investing, with 51 per cent of the responding private capital managers expecting to use active ownership to fulfil their ESG goals.
“Private capital managers are emerging as the strongest advocates for ESG and sustainable investing,” the study said.
“Institutional investors overall are firmly committed to their sustainability goals. Geopolitical complexity has affected private capital managers’ even less, with 56 per cent saying that this has no influence on their objectives, compared to 41 per cent of asset owners and 40 per cent of asset managers.
“They are also likely to remain vocal on their ESG and sustainable investing achievements, as only 34 per cent say they will be less public about their process, compared to 45 per cent of conventional asset managers.”
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Private capital is being used to fill a funding gap in large infrastructure projects, many of which support the net-zero transition.
“Private capital managers are leading in ESG because they are directly involved in real infrastructure – building wind farms, solar plants, and sustainable infrastructure,” said an unnamed global head of sustainability at an Italian renewable energy fund manager, cited in the report.
BNP Paribas’ survey also found that private capital managers tend to be more focused on social issues than other investors, and they have a long-term commitment to decarbonisation.
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And in the short term, private capital managers see increasing allocations to energy transition assets, investing in low-carbon assets and reporting carbon emissions as key ESG/sustainability objectives, the survey found.
