Value Creation a Key Theme at the 2025 New Private Markets Responsible Investment Forum in New York City

Bridge House Advisors attended the New Private Markets Responsible Investment Forum, held on March 4-5^thin New York City, which gathered over 350 participants and leaders in the private markets to explore how ESG can continue to drive tangible value creation amidst evolving regulations, domestic pushback, and continuing expectations from Limited Partners (LPs). The discussions underscored that ESG is not just about compliance—it can be a strategic tool for private market investors to contribute to growth and manage risk.

A central theme at the Forum was the need to simplify ESG programs by focusing on core principles that directly enhance financial performance, operational efficiencies, and risk management. With increasing regulatory requirements in some regions, compliance and disclosure has become the baseline. However, the firms that truly succeed will be those that can proactively manage ESG risks and flip regulatory obligations into opportunities for value creation.

LPs offered their perspectives on data collection, stating that carbon footprints, specifically Scope 1 and 2 emissions, are now considered table stakes for portfolio companies to report on. The real opportunity, however, lies in leveraging more than just emissions data to move beyond a ‘check the box’ exercise. When analyzed effectively, footprinting data can reveal significant cost-saving opportunities and areas for operational improvement. Transformation-oriented deal teams and portfolio companies can move beyond accounting and disclosure to drive immediate low- and no-cost operational cost reductions, which is a great way to jump start a broader ESG initiative.

Understanding the expectations of Limited Partners (LPs) and ESG program drivers was a key focus at this year’s Forum, especially amid a changing regulatory landscape. The discussions emphasized that ESG programs must move beyond rhetoric and buzzwords to deliver measurable outcomes that resonate with LP priorities. This requires a shift from treating ESG as a standalone responsibility of ESG teams to embedding it throughout the firm’s operations—including the investment team’s deal thesis.

The overarching message from the Forum was clear: ESG can be used as a strategic lever to mitigate risk and create value – the latter being more elusive when disclosure and accounting seem to be dominant challenges. Simplifying ESG programs, focusing on data-driven insights that lead to action, and aligning with LP expectations will be crucial for firms aiming to thrive in this evolving landscape. As the ESG landscape continues to mature, the ability to turn ESG challenges into opportunities for value creation will distinguish the leaders from the laggards.

Bridge House Advisors is committed to helping private equity firms unlock ESG’s full potential through diagnostics-driven insights, actionable strategies that deliver financial value, and a focus on material risks and opportunities. By transforming ESG from a compliance and reporting exercise into a strategic advantage, firms cannot only meet regulatory and LP expectations but also drive growth, achieve operational improvements, and build better and more valuable businesses.

Laura Miller
ESG Consultant