ESG attracting more PE interest, set to grow, says Bain report

Appetite for environmental, social and governance-related investment is poised to see growth in China over the coming years, according to a report by Bain &Company on China's private equity market.

Investments into the ESG space have already seen rapid growth in China, with evidence that ESG-focused PE investments have higher financial returns, the report said.

General partners are increasingly aligning their investment strategy with ESG principles and are more conscious about avoiding risk related to ESG, according to Zhou Hao, a Bain partner and co-author of the report.