US private equity managers are lagging behind their European counterparts when it comes to their commitment to ESG standards, according to Tycho Sneyers, Managing Partner at LGT Capital Partners. “In the US, there is a lot of regulatory pushback towards ESG, and that makes it, for certain managers, even more challenging to engage on the topic,” he explains.

Current global challenges – ranging from geopolitical tensions to climate risks – are making the situation even more difficult: “We have moved from a unidirectional world order to a much more bipolar environment,” says Tycho. He believes a great deal will also depend on what happens in the forthcoming US election. “The world is not decarbonizing as fast as it should. In the US, there is a growing community that is trying to pull things backwards,” he adds.

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