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22 December, 2025

From ESG ratings to financial outcomes

Road leading to forest

As private markets look ahead to 2026, sustainability is increasingly shaping both value creation in private equity and value preservation in private credit. While years of research have linked stronger ESG performance to improved financial results, much of this work has relied on external ratings as a proxy for impact. That evidence is useful, but it is no longer sufficient on its own.

The next phase of ESG integration requires a shift away from high-level scores toward company-level analysis that connects sustainability decisions directly to costs, revenues, risks, and valuation. This article sets out a practical framework for doing exactly that, grounded in financial implications rather than disclosure alone.

Visit our Holtara website to read the full article

Holtara is our sustainability and ESG services brand – powered by 150+ ESG, climate, sustainability, and impact specialists.

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