In Europe at least, 2023 is likely to represent a bump in the road for the growth of ESG and impact investment. Tying financial compensation to ESG performanceThe global focus on ESG is also changing the way in which GP compensation is administered. Many impact funds are now exploring options for linking GP renumeration to specific impact targets. Adopters include a number of leading impact sponsors, who tie carried interest to the fulfillment of an impact fund’s mission. [5] Around £4.38 billion was moved from ESG funds into investments perceived to be lower risk such as money market funds, these funds representing more withdrawals than in the previous eight years combined.

Source: The Times February 13, 2024 11:09 UTC