White paper from BCI (British Columbia Investment Management) and Stanford University's Long-Term Investing Initiative (SLTI).
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British Columbia Investment Management Corporation (BCI), one of Canada’s largest institutional investors, and Stanford University’s Long-Term Investing Initiative (SLTI) today released new research in a whitepaper demonstrating how Environmental, Social, and Governance (ESG) factors can contribute to measurable value creation in private equity investments.
The whitepaper, ESG Value Creation in Private Equity: From Rhetoric to Returns, combines BCI Private Equity’s operational investment insights with SLTI’s research methodology to show how financially material ESG initiatives can contribute to EBITDA improvements, reduce operational risk, and strengthen exit readiness. Drawing on illustrative case studies from BCI’s global private equity portfolio, the publication offers evidence-based pathways for integrating ESG into core value-creation strategies.
“ESG integration in private markets is not just about managing risk; it is about creating value,” said Jim Pittman, Executive Vice President & Global Head, BCI Private Equity. “This research demonstrates how rigorous ESG practices can enhance portfolio performance while advancing the sustainability outcomes our clients expect.”
“For too long, the ESG discussion in private markets has been dominated by labels, ratings, and broad commitments. What has been missing is financial evidence,” said Evan Greenfield, Managing Director, ESG, BCI Private Equity. “This research shows that when ESG is treated as a financially material operating discipline, it strengthens the fundamentals that matter to investors: higher earnings, lower risks, and clearer pathways to enhanced value at exit.”
“Academic–practitioner research collaborations like this one are essential for moving beyond rhetoric to evidence,” said Ashby Monk, PhD, Executive Director, Stanford Long-Term Investing Initiative. “BCI Private Equity brings real-world operational insights and data that most researchers never access. The findings help the industry understand not only whether ESG creates value, but how and under what conditions it does so.”
The whitepaper provides a practical framework that investors, general partners, and policymakers can apply to assess ESG materiality, quantify certain financial outcomes, and embed ESG across the private equity investment lifecycle from due diligence and ownership to exit strategy. The findings offer new insights in a field often challenged by inconsistent definitions and data limitations.
The publication builds on BCI’s longstanding leadership in responsible investing. BCI integrates ESG factors across its C$295 billion global portfolio and publishes an annual Stewardship Report outlining its approach to engagement across all asset classes and long-term value creation.
View the full whitepaper at: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=6000614
BCI Website: https://www.bci.ca
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