A $9.5 Trillion Investor Group Wants Private Market Reforms

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Private Markets,Gunther Thallinger

(Bloomberg) -- Global ESG investors with $9.5 trillion under management say it’s time to demand more accountability from private markets, amid evidence...

-- Global ESG investors with $9.5 trillion under management say it’s time to demand more accountability from private markets, amid evidence they’re increasingly absorbing fossil-fuel assets.The Net Zero Asset Owner Alliance, whose 89 members include CalPERS, Zurich Insurance and Munich Re, is expanding its protocol to include all private asset classes. It previously excluded debt funds, directly held real estate debt funds and residential mortgage loans.

The build-up of high-carbon assets inside private markets is “worrisome for us because at the end, we are investors and we need to show investment performance overall,” Thallinger said. CSRD requires an estimated 50,000 companies — both listed and unlisted — to report sustainability metrics, including emissions. The directive is still being phased in, with the largest companies due to publish the first reports in 2025.“We want to have sustainability information, we want to have this audited, so that we can really do our investment decision-making in the classical sense,” he said.

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A $9.5 Trillion ESG Investor Group Wants Private Market ReformsGlobal ESG investors with $9.5 trillion under management say it’s time to demand more accountability from private markets, amid evidence they’re increasingly absorbing fossil-fuel assets.
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