Over one third of European private equity, venture capital firms have environmental management systems in place

• 756 firms reported having formal ESG policies and initiatives in 2024, Invest Europe data shows

• 21% of portfolio companies now have a Net Zero target

Brussels, Belgium, 26 March 2026 - More than one third of European private equity, venture capital firms have environmental management systems in place, according to new data from Invest Europe. The association representing Europe’s private equity, venture capital and infrastructure sectors, as well as their investors, today published the fourth annual edition of its Environmental, Social, Governance (ESG) Key Performance Indicator report. The data shows a step up in sustainability commitments by European managers, leading to progress at portfolio companies to reduce environmental impact and embrace governance measures, such as combatting corruption and bribery, and preventing cybersecurity risks.

Invest Europe’s ESG KPI Report: Managing what you measure analyses 2024 data from 1,206 managers covering 4,039 funds and 8,756 portfolio companies, the largest dataset produced by the association to date (+27% in businesses covered vs. previous year of data collection).

• 756 firms reported having formal ESG policies and initiatives in 2024

• 21% of portfolio companies now have a Net Zero target, while 36% have environmental management systems in place, including more than half of buyout-backed businesses.

• Governance standards are also strengthening. 69% of portfolio companies now have anti-corruption and bribery policies, while 75% have cybersecurity policies, increases of 6 and 7 percentage points respectively.

Female representation remained broadly stable despite a significant increase in the number of respondents. Women held 37% of full-time equivalent roles at portfolio companies in 2024 and 17% of board seats.

Eric de Montgolfier, CEO of Invest Europe, commented:

“European GPs are turning ESG from a reporting exercise into a practical tool for building better businesses. As expectations from regulators and investors rise, firms are strengthening sustainability and governance standards across the companies they own.”

Invest Europe’s ESG KPI report is part of a comprehensive suite of data and guidance, including our ESG Reporting Guidelines and the recently updated ESG Reporting Template. To read the ESG KPI Report: Managing what you measure, please click here.