While politicians and business leaders in some fields may have halted ESG initiatives, new research suggests these can drive returns in private equity markets. According to a white paper published by researchers from one of Canada's largest institutional investors and Stanford University, there is evidence that environmental, social, and governance factors help create measurable value. According to British Columbia Investment Management and Stanford University's “Long-term Investment Initiative,” research shows that financially significant ESG initiatives can help improve earnings before interest, taxes, depreciation, amortization, reduce operational risk, and better prepare for value realization when investments are withdrawn. Researchers say ESG enhances fundamentals critical to investors when viewed as a financially significant operating guideline.

While politicians and business leaders in some fields may have halted ESG initiatives, new research suggests these can drive returns in private equity markets. According to a white paper published by researchers from one of Canada's largest institutional investors and Stanford University, there is evidence that environmental, social, and governance factors help create measurable value. According to British Columbia Investment Management and Stanford University's “Long-term Investment Initiative,” research shows that financially significant ESG initiatives can help improve earnings before interest, taxes, depreciation, amortization, reduce operational risk, and better prepare for value realization when investments are withdrawn. Researchers say ESG enhances fundamentals critical to investors when viewed as a financially significant operating guideline.