ESG in Alternatives 2024

In our annual ESG report, we find ESG is now embedded across alternatives, although uptake is greater in some asset classes and regions than others

• ESG fundraising cooled in 2023 to $91bn globally, but has been resurgent in 2024, reaching $55bn by April

• Performance difference between ESG funds (13.5% IRR) and non-ESG funds (15% IRR) is not significant, but ESG funds exhibit lower variance generally

• Six out of ten investors have turned down an otherwise attractive investment over ESG concerns or would do so

• Surge in transactions across clean tech, agtech, and EVs in 2021 and 2022 - totalling $177bn - following legislation in US and Europe