Private Equity and Venture Capital’s Role in Catalyzing Sustainable Investment : Input Paper for the G-20 Sustainable Finance Study Group

Ahmad, Reyaz A. ; Reed, Laird ; Zhang, Rong

International Finance Corporation, Washington, DC

关键词: PRIVATE EQUITY;    VENTURE CAPITAL;    EMERGING MARKET ECONOMIES;    ENVIRONMENTAL SUSTAINABILITY;    ECOTECHNOLOGY FUND;   

RP-ID  :  133090

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

A defining characteristic of the privateequity and venture capital (PE and VC) investment style isthe injection of expertise (including technical knowledge,industry relationships, management skills, and so on) inconjunction with risk capital into enterprises to help themgrow, improve their performance, and achieve strongfinancial returns. Harnessing this investment style in thepursuit of sustainable growth and investment is central toachieving the innovation needed for sustainable development.PE funds increasingly align with value creation linked tosocial and environmental considerations. PE firms arerecognizing the material value brought by sustainablebusinesses and social enterprises, which has resulted in agreater availability of sustainable PE capital that follows,to varying degrees, one or more of the disparate standardsbeing developed or already in the market. This paper focuseson key aspects of sustainable PE and VC market developmentand deployment. It discusses: (1) why sustainable PE and VCis a useful tool to catalyze other types of capital toachieve sustainability objectives, (2) best practices andlessons learned from the experiences of knowledge partners,(3) the main barriers to further developing the sustainablePE and VC market, and (4) options for countries tovoluntarily consider or adopt to overcome these barriers.