Climate issues in portfolio investment decisions: a comparison of Private equity and venture capital

Jörn Block, Lena Benz, Helmut Krämer-Eis, Antonia Botsari, Frank Lang and Filip Mandys

Venture Capital, 2025, vol. 27, issue 4, 489-519

Abstract: Private equity (PE) and venture capital (VC) firms increasingly consider climate issues in their portfolio investment decisions. However, what are the underlying motives and which exact consideration strategies are employed? Based on the responses of 479 VC and 215 PE fund managers from two large surveys carried out in 2021, four motives emerge: ethical responsibility, responding to external stakeholders, product differentiation, and portfolio performance. Responding to external stakeholders and portfolio performance motives matter more to PE firms, while the product differentiation motive is more important for VC firms. No difference is found with respect to ethical responsibility as a motive. Regarding climate consideration strategies, screening strategies (positive and negative) are the most popular. Differences between VC and PE firms exist, and the motives to consider climate issues have an impact on the strategies employed. The implications for policymakers and the entrepreneurial finance sector are discussed.

Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/13691066.2024.2351218 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:veecee:v:27:y:2025:i:4:p:489-519

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/TVEC20

DOI: 10.1080/13691066.2024.2351218

Access Statistics for this article

Venture Capital is currently edited by Colin Mason and Richard T. Harrison

More articles in Venture Capital from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().