At the Real Deals Sustainable Investment Forum 2026, private equity leaders came together to discuss how sustainability is reshaping investment strategies, portfolio management and value creation. As part of the agenda, KEY ESG’s COO Anne Marie Schoonbeek joined an interactive panel exploring a question that is front of mind for many GPs today: how can ESG move beyond compliance to become a genuine driver of growth, resilience and performance across portfolio companies?
Moderated by Anaïs Blarel, Sustainability Manager at Revaia, the session brought together perspectives from investors, operating partners and climate specialists. What emerged clearly was that ESG, when done well, is no longer a reporting exercise. It is a practical management tool that helps portfolio companies perform better, manage risk more effectively and prepare for long term value creation.
ESG value creation is already happening in portfolios
Across the panel, speakers shared concrete examples of how ESG initiatives are delivering tangible business outcomes.
Supply chain resilience was a recurring theme. From food manufacturers exposed to high risk sourcing regions, to industrial businesses reliant on critical suppliers, greater supply chain transparency is helping companies anticipate disruptions, protect revenues and meet customer expectations. In several cases, ESG data and supplier assessments were a prerequisite to maintaining key customer relationships.
Decarbonisation was also consistently framed as a value lever rather than a cost. Energy efficiency programmes have reduced operating costs and improved energy security, while clear transition plans have supported access to capital and strengthened credibility with lenders, insurers and customers. In some cases, carbon accounting exercises uncovered basic inefficiencies, such as fragmented energy procurement, unlocking immediate cost savings once addressed.
Product innovation featured strongly as well. Companies that embedded sustainability into R&D and product strategy were able to differentiate themselves in competitive markets, win tenders, and respond togrowing demand for lower impact products. Examples ranged from construction software businesses repositioning their value proposition, to manufacturers using sustainability credentials to strengthen employer branding and talent retention.
The common thread across these examples was focus. The highest return initiatives combined multiple benefits, cost reduction, risk mitigation, compliance readiness and revenue opportunity, rather than tackling ESG as a long list of disconnected actions.
What limited partners and portfolio companies are really asking for now
The panel also explored how expectations from limited partners and portfolio companies are evolving.
LPs are moving beyond questions of data coverage to questions of data credibility. There is growing scrutiny of year on year trends, methodological consistency and the ability to clearly link sustainability priorities to financial performance. Comparability across portfolios, supported by standardised KPIs and frameworks, is increasingly important.
At the same time, LPs are sharpening their focus on portfolio level risk. Climate risk exposure, supply chain concentration,transition readiness and insurability are all areas where GPs are expected to demonstrate structured oversight and proactive management.
Portfolio companies, particularly in the small to midmarket, are feeling the pressure of expanding regulatory requirements, from CSRD to climate related disclosures, alongside customer demands for greater transparency. For many, the challenge is not intent but capacity. Data availability, ownership and quality remain key hurdles, especially where sustainability teams are small or non existent.
The direction of travel is clear. ESG initiatives are becoming more targeted, more material and more closely tied to value creation and risk outcomes.
ESG as a driver of professionalisation and exit readiness
A particularly strong theme from the discussion was the roleof ESG in professionalising portfolio companies.
Introducing sustainability frameworks often brings structure, accountability and data discipline into organisations that previously lacked consistent measurement across energy use, waste, water orsupply chains. This in turn strengthens governance, clarifies ownership across functions and improves risk anticipation.
Several speakers noted that ESG can act as a catalyst for cultural change, helping management teams articulate a clearer vision and long term strategy. It also increases credibility with external stakeholders,investors, lenders, insurers and buyers, and supports readiness for scale,financing and eventual exit.
In short, ESG done well supports better management. Not because it adds complexity, but because it brings clarity.
Turning insight into action across private equity portfolios
One of the challenges highlighted during the session was execution at scale. Private equity firms need to balance increasing LP scrutiny, growing regulatory requirements and the practical realities of supporting diverse portfolio companies with varying levels of maturity.
This is where the right systems and processes matter.
At KEY ESG, we work closely with private equity firms to help them manage sustainability and risk across their portfolios in a way that is pragmatic, flexible and genuinely useful for investment teams and portfoliocompanies alike. Our platform is designed to be easy to use for nonsustainability professionals, while offering the depth and robustness required to meet LP, regulatory and internal decision making needs.
From establishing consistent data foundations and governance during the holding period, to supporting portfolio wide analysis, trend tracking and risk assessment, our goal is to help GPs turn sustainability from a reporting burden into a management advantage.
Continue the conversation
If you would like to explore how private equity firms are using KEY ESG to support portfolio performance, resilience and value creation,we would love to show you.
Book a demo to see how our platform can support your portfolio companies today and help youbuild stronger, more resilient portfolios for the long term.
At the Real Deals Sustainable Investment Forum 2026, private equity leaders came together to discuss how sustainability is reshaping investment strategies, portfolio management and value creation. As part of the agenda, KEY ESG’s COO Anne Marie Schoonbeek joined an interactive panel exploring a question that is front of mind for many GPs today: how can ESG move beyond compliance to become a genuine driver of growth, resilience and performance across portfolio companies?
Moderated by Anaïs Blarel, Sustainability Manager at Revaia, the session brought together perspectives from investors, operating partners and climate specialists. What emerged clearly was that ESG, when done well, is no longer a reporting exercise. It is a practical management tool that helps portfolio companies perform better, manage risk more effectively and prepare for long term value creation.
ESG value creation is already happening in portfolios
Across the panel, speakers shared concrete examples of how ESG initiatives are delivering tangible business outcomes.
Supply chain resilience was a recurring theme. From food manufacturers exposed to high risk sourcing regions, to industrial businesses reliant on critical suppliers, greater supply chain transparency is helping companies anticipate disruptions, protect revenues and meet customer expectations. In several cases, ESG data and supplier assessments were a prerequisite to maintaining key customer relationships.
Decarbonisation was also consistently framed as a value lever rather than a cost. Energy efficiency programmes have reduced operating costs and improved energy security, while clear transition plans have supported access to capital and strengthened credibility with lenders, insurers and customers. In some cases, carbon accounting exercises uncovered basic inefficiencies, such as fragmented energy procurement, unlocking immediate cost savings once addressed.
Product innovation featured strongly as well. Companies that embedded sustainability into R&D and product strategy were able to differentiate themselves in competitive markets, win tenders, and respond togrowing demand for lower impact products. Examples ranged from construction software businesses repositioning their value proposition, to manufacturers using sustainability credentials to strengthen employer branding and talent retention.
The common thread across these examples was focus. The highest return initiatives combined multiple benefits, cost reduction, risk mitigation, compliance readiness and revenue opportunity, rather than tackling ESG as a long list of disconnected actions.
What limited partners and portfolio companies are really asking for now
The panel also explored how expectations from limited partners and portfolio companies are evolving.
LPs are moving beyond questions of data coverage to questions of data credibility. There is growing scrutiny of year on year trends, methodological consistency and the ability to clearly link sustainability priorities to financial performance. Comparability across portfolios, supported by standardised KPIs and frameworks, is increasingly important.
At the same time, LPs are sharpening their focus on portfolio level risk. Climate risk exposure, supply chain concentration,transition readiness and insurability are all areas where GPs are expected to demonstrate structured oversight and proactive management.
Portfolio companies, particularly in the small to midmarket, are feeling the pressure of expanding regulatory requirements, from CSRD to climate related disclosures, alongside customer demands for greater transparency. For many, the challenge is not intent but capacity. Data availability, ownership and quality remain key hurdles, especially where sustainability teams are small or non existent.
The direction of travel is clear. ESG initiatives are becoming more targeted, more material and more closely tied to value creation and risk outcomes.
ESG as a driver of professionalisation and exit readiness
A particularly strong theme from the discussion was the roleof ESG in professionalising portfolio companies.
Introducing sustainability frameworks often brings structure, accountability and data discipline into organisations that previously lacked consistent measurement across energy use, waste, water orsupply chains. This in turn strengthens governance, clarifies ownership across functions and improves risk anticipation.
Several speakers noted that ESG can act as a catalyst for cultural change, helping management teams articulate a clearer vision and long term strategy. It also increases credibility with external stakeholders,investors, lenders, insurers and buyers, and supports readiness for scale,financing and eventual exit.
In short, ESG done well supports better management. Not because it adds complexity, but because it brings clarity.
Turning insight into action across private equity portfolios
One of the challenges highlighted during the session was execution at scale. Private equity firms need to balance increasing LP scrutiny, growing regulatory requirements and the practical realities of supporting diverse portfolio companies with varying levels of maturity.
This is where the right systems and processes matter.
At KEY ESG, we work closely with private equity firms to help them manage sustainability and risk across their portfolios in a way that is pragmatic, flexible and genuinely useful for investment teams and portfoliocompanies alike. Our platform is designed to be easy to use for nonsustainability professionals, while offering the depth and robustness required to meet LP, regulatory and internal decision making needs.
From establishing consistent data foundations and governance during the holding period, to supporting portfolio wide analysis, trend tracking and risk assessment, our goal is to help GPs turn sustainability from a reporting burden into a management advantage.
Continue the conversation
If you would like to explore how private equity firms are using KEY ESG to support portfolio performance, resilience and value creation,we would love to show you.
Book a demo to see how our platform can support your portfolio companies today and help youbuild stronger, more resilient portfolios for the long term.
