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Laxman Pai, Opalesque Asia:

An overwhelming majority (88%) of private equity investors plan to step up their efforts to manage and measure ESG performance in their portfolio companies over the next two years, said a study.

However, almost half (46%) of those canvassed raised concerns about their ability to fend of greenwashing, said an analysis by Intertrust. This is coupled with concerns about the ability to quantify and measure impact, cost and resource constraints and also staying on top of multiple data sources.

The Intertrust report found that general partners (GPs) expect it to take around five years before a standardized model of ESG can be used across portfolio names. The company said there will be a greater onus on companies' tech abilities to help drive change.

Intertrust interviewed around 150 private equity fund managers across Europe, North America and Asia to identify the risks and opportunities facing the private equity industry in the coming 12-24 months.

GPs highlighted the three biggest obstacles to implementing ESG programs at a portfolio company level as quantifying and monitoring their impact; cost and resource constraints; and managing multiple sources of ESG data.

Underlining the complexities involved in the process, GPs predict that it will take over five years before they can produce standardized ESG data across their portfolio companies.

According to Intertrust, this will put the onus on tech-enabled service providers to ......................

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