2025 State of ESG: Insights from the frontlines of private markets

Malk Partners’ 2025 State of ESG Report captures how ESG practices are evolving across private equity, private credit, venture capital, real estate, and infrastructure. Based on survey responses from 71 GPs representing $2.6T in AUM and 105 sponsor-backed portfolio companies, this third annual report provides a nuanced, data-driven view into how investors and companies are navigating a rapidly shifting ESG landscape.

Key findings reveal that foundational ESG programs remain firmly in place, despite external pressures. While political scrutiny around ESG in the U.S. continues to make headlines, the impact appears more symbolic than structural. Meanwhile, ESG is increasingly viewed through a regulatory lens, yet many U.S.-based companies are still underprepared for new and emerging requirements. The potential for value creation remains a key driver for ESG integration, but realizing those benefits continues to be a challenge for many firms. Encouragingly, both GPs and portfolio companies are demonstrating increased sophistication in climate and decarbonization efforts, signaling a maturing ESG landscape.