Despite their reputation in the 1980s as corporate raiders, most private equity firms attempt to improve the performance of their portfolio companies through better corporate governance. But while the G in ESG (environmental, social, and governance) has always been important in the industry, the E and the S have been virtually nonexistent. But that needs to change, argue the authors of this Harvard Business Review article. They write that PE has grown so large that society's most urgent challenges can't be addressed without the industry's active participation in the sustainability movement. |