NEW YORK CITY, NY / ACCESS Newswire / April 22, 2026 / While ESG momentum among GPs has rebounded this year, progress among portfolio companies has slipped, according to the new State of ESG report from Malk Partners, a company of SLR.
For LPs, ESG remains firmly central to allocation decisions. 83% of LP respondents cited that they have declined to invest with a GP primarily due to ESG concerns, and 73% have not changed their engagement with GPs on DEI in response to anti-ESG U.S. government action.
Meanwhile, following a temporary slowdown last year driven by anti-ESG U.S. government actions, ESG momentum among GPs is steadily rebuilding. The share of GPs with a dedicated ESG budget (60%) has more than doubled over the past year. Further, one-third of GPs with an ESG budget expect this budget to increase over the next year, while only 2% expect a decrease.
That said, ESG progress at the portfolio company-level has slipped. This year, a relatively smaller share of portfolio companies reported that they convene an ESG Committee (-10% year-over-year), maintain an ESG Policy (-9%), and conduct ESG Training (-7%). Furthermore, despite 71% of LPs prioritizing ESG value creation and 54% of GPs integrating ESG into portfolio value creation plans, only 23% of portfolio companies feel prepared to drive value related to ESG and an even smaller share (9%) feel prepared to quantify this value.
Max Hong, CEO at Malk, says, "ESG is a crucial financial and operational lever in private markets, particularly in today's more challenging exit market. Yet, this year's report highlights a growing gap between investor expectations and portfolio company readiness and capabilities to execute against these expectations. To close this gap, GPs should play a more effective sponsorship role by setting clear goals and metrics at the board level and supporting priority ESG strategies and initiatives in their portfolio companies that result in higher growth and profitability."
Bradley Andrews, CEO at SLR, comments, "This year's data is clear: ESG execution is now central to both capital access and portfolio value accretion. Yet, many companies are still working to build the practical capabilities investors expect. The challenge is moving from ambition to measurable progress by embedding ESG into everyday decisions and operations. Those who deliver tangible results will be best positioned to create value and build trust in today's market."
For a more detailed analysis of the research, download the full report: https://malk.com/esg-report/
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Notes to editors:
The report's survey drew on responses from 80 general partners (GPs), 114 sponsor-backed portfolio companies, and 18 limited partners (LPs) across North America and Europe.
About Malk Partners
Malk Partners (Malk) is the leading advisor to private market investors for creating and protecting value through environmental, social, and governance (ESG) management and impact investing. Founded in 2009, Malk has supported many of the world's top alternatives managers - including those in private equity, growth equity, venture capital, and private credit - by helping define ESG goals, achieve meaningful results, and guide portfolio companies in driving value creation and mitigating risks.
In October 2024, Malk was acquired by SLR, a global sustainability consultancy with over 4,500 technical consulting and strategic advisory professionals across Asia-Pacific, Europe, Middle East and Africa, Canada, North America and Latin America. Combining this global footprint with rich technical expertise and deep strategic knowledge, Malk can leverage expanded capabilities and resources to deliver world-class ESG strategies for its clients. Together, we bring a shared purpose of 'Making Sustainability Happen,' supporting businesses and investors across diverse industries and project life cycles.
For more information, please visit: www.malk.com
About SLR
SLR is a leading global environmental and advisory consultancy, with a team of 5,000+ talented professionals operating from a network of offices in Europe, the Americas, Asia-Pacific, the Middle East, and Africa.
Our purpose - Making Sustainability Happen - means delivering outcomes that are grounded in evidence, shaped by experience, and built to last. Our team of scientists, engineers, economists, data modellers, and technicians work across our clients' full sustainability journeys, from strategy through to on-the-ground project planning, execution and ongoing operations, all supported by robust data and science-based modelling.
Guided by our philosophy of Rational Sustainability, SLR specialises in the energy, mining, finance, industry & technology, government & infrastructure, and built environment sectors. Operating across more than 50+ technical disciplines, we're helping a growing base of business, regulatory and government clients navigate the ever-shifting context of sustainable business.
Find out more about SLR: www.slrconsulting.com
Malk, part of SLR
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SOURCE: SLR
View the original press release on ACCESS Newswire:
https://www.accessnewswire.com/newsroom/en/banking-and-financial-services/investors-are-driving-esg-ambition-but-portfolio-companies-lack-guid-1159868
