ESG-related investing remains active
Published 2 February 2023
Fundraising for both new funds and startups in the ESG-related space seems insulated from the general decline in the market. Despite investors having seen a general market decline within VC investments (see also Startup whiplash hits some sectors harder than others) investing in ESG-related funds and startups continue.
According to analyses by PitchBook and Deloitte, ESG-related funds have since 2007 seen a long-term trend of 1) more funds being established and 2) more assets being raised, with 2022 being a record year.
Furthermore, the investing in startups in the ESG-related space, especially within clean and climate tech have not been impacted by the broader market trends and decline in dealmaking as seen in other sectors.
Lastly, according to surveys completed by global investors, hereunder both LPs and GPs, 73% of European asset managers use an ESG risk factor framework and 70% offer impact investing strategies, compared to 56% and 61%, respectively, for North American asset managers.