Due to the growth and rapid adoption of various sectors within the renewables space, investors are now prioritizing ESG. As such, PE shops are pouring institutional money into climate-friendly investments. The shift toward renewables has also led to banks committing more financing toward these climate-friendly projects than previously focused conventional sources.

Addressing how PE follows the money, Kelly DePonte, managing director at Probitas Partners notes that investors in private equity, like pension funds, “are moving away from investing in oil and gas no matter the returns in pursuit of their carbon neutral goals.”