Integrating ESG Considerations in Private Debt Funds in North-western Europe

With the planet facing unprecedented environmental challenges, social inequality, and governmental issues, financial institutions and regulators are rethinking traditional investment schemes and recognizing the potential of investments driven by sustainability. However, the unique characteristics of the private debt asset class, relative to more tangible asset classes, have caused a slow and turbulent progress in integrating ESG standards in their investment processes. Research on the intercept of ESG integration and private debt funds is very scarce. As a result, researchers have not been able to portray how ESG is being integrated into the investment practices of private debt funds.