According to Tesi’s recent study, sustainability has been increasingly embedded in the strategies and investment processes of VC and PE investors, even as the shifting geopolitical landscape and evolving sustainability regulations create new pressures.
Tesi first examined the sustainability practices of Finnish General Partners in autumn 2022. The study was repeated in January 2025. A lot has happened in the field of corporate responsibility (ESG) and impact between the two surveys. While regulatory initiatives related to sustainability, such as SFDR, have become an established part of investment operations, geopolitical changes and uncertainty about future regulation are influencing the discourse around sustainability. The second iteration of the study explored how investors have advanced sustainability practices between 2022 and 2025 and took a deeper look at selected areas, such as impact.
Stricter reporting requirements for portfolio
The 2022 study suggested that investors would require more detailed reporting from their portfolio companies in the future. The latest study confirms this trend: SFDR Article 8-level funds seem to be emerging as the new industry standard. The share of Article 8 funds has grown by about 50% since 2022, and they now make up approximately one-third of GPs’ most recent funds. Of planned next funds, 70% are classified as Article 8. Notably, no investor is planning to raise their next fund under the Article 6 classification.
In addition to the increased popularity of Article 8 funds and beyond, regular ESG data collection from portfolio companies has now become a norm. While in 2022 only 55% of investors collected ESG-related data from their portfolio companies, the figure has now jumped to an impressive 95%. This data is generally collected across the entire portfolio, and more than half have made it mandatory for portfolio companies. These results indicate that ESG data is increasingly seen as a central part of portfolio management and development.
Sustainability-related goals in investment processes are becoming more common
In addition to stricter reporting requirements, ESG matters have also become more deeply integrated into the goals of investors. In 2025, 95% have set sustainability-related goals either for their organization or the portfolio companies of their latest fund. What adds to the significance is that the latest survey had a stricter definition for a goal – it must be approved by management and be regularly monitored.
Regarding specific goals, the share of investors conducting emission calculations has grown significantly. At the time of the first study, only one-quarter of investors calculated their own or their portfolio companies’ Scope 1–3 emissions, but now 64% do so. Emission calculation is expected to become even more commonplace: 83% plan to either continue or start calculating emissions within the next few years. This suggests that emission calculation is becoming a norm that growth companies should prepare for. When comparing this with Tesi’s Growth Company Pulse Survey published in early 2025, the share of growth companies conducting emission calculation still lags behind investor expectations – only about 29% of growth companies conducted emission calculations in 2024.
ESG often an integral part of investment processes – impact is considered less
Although sustainability has played a key role in strategy and goals in both 2022 and 2025, there has been clear progress in integrating ESG into investment processes and portfolio management. All investors who participated in the 2025 survey state to aim for responsible and impact investing, and nearly all have adopted sustainability-related practices in their investment processes.
In 2025, ESG assessment of investment targets is the norm, not an exception. ESG due diligence (ESG DD) is conducted in every investment process by 76% of investors, and nearly all (95%) utilize the results in some way. In 2022, the survey examined the potential implications of ESG DD findings. The latest survey instead explored how ESG DD findings have been used in practice. In 2022, as many as 96% of respondents stated that the findings could prevent an investment. In 2025, 37% said this had actually happened. This suggests that a company’s sustainability is a key factor in decision-making. ESG DD findings also serve a role during the ownership period – three-fifths of investors use them as a basis for value creation plans, and one-quarter incorporate them into contracts.
In addition to ESG, more and more investors have started conducting impact assessments in recent years. For this reason, the 2025 survey specifically examined the role of impact in investment processes. Slightly over half (52%) of investors surveyed conduct impact assessments, and the results are mainly used in investment presentations and value creation plans. However, impact assessment seems to remain a relatively new practice compared to ESG DD, as nearly one-fifth (18%) of those who perform impact assessments don’t utilize the findings at all. The differences between the consideration of ESG and impact are also visible in monitoring – all investors track the progress of ESG matters within portfolio companies, but only about two-thirds track impact.
Findings reflect the results of long-term work
The development of sustainability practices in venture capital and private equity has long been a core part of Tesi’s operations. Evaluating and advancing sustainability at an appropriate scale generates value for both companies and the broader market. At its best, responsible business practices support the company’s stable financial development and create growth opportunities. Addressing sustainability issues assists in identifying and managing risks, thereby enhancing resilience during periods of change. Additionally, sustainability can create business opportunities by providing insights into market developments and understanding the needs of emerging customer segments.
We at Tesi support both companies and investors in advancing sustainability matters relevant to their operations. Between the two studies, we have engaged in active dialogue with investors on sustainability topics. We have also developed practical tools and guides for both investors and companies – such as ESG support materials and a carbon footprint calculator. Therefore, it is very encouraging to see that a great deal of progress has been made in a relatively short time. These results demonstrate that PE and VC investors take sustainability seriously and that it is producing concrete outcomes.
Find the latest study here.
Tesi’s sustainability tools and materials can be found here.
Selja Ryöppy
Sustainability Manager, Tesi
Tapio Parkkonen
Investment Analyst, Tesi
Kaisa Pitkäkari
Trainee, Tesi
