The Pulse on ESG in 2026

Now in its fourth year, the 2026 State of ESG Report takes a clear-eyed look at how ESG is evolving across private markets – spanning strategy, resourcing, reporting, and value creation.

This year’s analysis draws on insights from across the private markets ecosystem:

• 80 GPs across asset classes and firm sizes, representing $17.2 trillion in AUM
• 114 sponsor-backed portfolio companies spanning revenue and headcount profiles
• New in 2026: input from 18 LPs, reflecting a diverse mix of AUM ranges, regions, and investor types

Together, these perspectives reveal a critical truth about where ESG stands today – and what’s needed to move it forward.

How Private Markets Move Forward

Investors are not pulling back on ESG ambition. In fact, LP expectations remain strong and GP investment is rising again. The challenge lies elsewhere.

Portfolio companies are being asked to deliver on ESG – but too often lack the practical guidance, operating support, and clear priorities needed to translate ambition into results.

The takeaway is clear:

This is not an ESG retreat. It’s an ESG alignment problem.

To unlock value, all three stakeholders must move in unison. ESG progress – and its ability to drive real financial and operational impact – depends on closing the gap between:

• LP vision
• GP direction and enablement
• Portfolio company capability

When these elements align, ESG delivers what today’s environment demands most: disciplined operational improvement, stronger resilience, and measurable value creation.

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