Venture capital firms lack ability to focus on ESG – report

(Pensions & Investments) Some venture capital managers may be interested in considering ESG factors in investments, but many lack adequate resources to apply those considerations and influence over portfolio companies and do not consider ESG to be material to the asset class, according to a report released Monday by the Principles for Responsible Investment, a United Nations-supported network of investors representing more than $121 trillion in assets.

PRI and VentureESG, a nonprofit urging ESG practices in venture capital, conducted interviews with asset owners, venture capital managers and other stakeholders in June and July of 2021. The paper indicated that the 104 general-partner respondents were either PRI signatories or members of VentureESG working groups. Therefore, the results likely overestimate the extent of ESG practice and understanding in the broader venture capital industry, the report said.

Read more here.

Posted in