Tesi’s review of sustainability in venture capital and private equity investment – Sustainability embedded in all Finnish investors’ strategies
Tesi has conducted its second survey on the sustainability practices of Finnish venture capital and private equity investors, focusing on responsibility and impact-related processes. This newly published report is an update to the first survey conducted in autumn 2022, and it not only tracks developments in sustainability themes but also expands on selected topics. Positive progress has been seen across multiple areas.
The report is divided into two sections: the first examines fund managers’ strategies and internal operations, while the second focuses on investment processes and portfolio-related practices. The results show that sustainability practices among private equity investors have improved in just a few years, especially in the assessment of investments’ sustainability and in portfolio monitoring.
Sustainability-related practices are most commonly applied in the pre-investment phase. 93% of fund managers have integrated sustainability into their investment processes; 88% exclude investments based on responsibility criteria and 81% promote sustainability in their portfolios through active ownership.
“We were positively surprised by how much progress has been made in just a few years. In particular, sustainability assessments before investment decisions and the collection of ESG indicators have now become established practices,” says Selja Ryöppy, Development Manager at Tesi.
Highlights from the 2025 survey results (2022 results in parentheses):
- 100% (94%) have incorporated sustainability into their strategy at some level
- 64% (25%) measure either their own Scope 1–3 emissions or those of their portfolio companies
- 57% (47%) have developed sustainability improvement plans for all portfolio companies
- 100% (97%) apply sustainable practices in investment activities
- 76% (59%) conduct ESG due diligence (ESG DD) in every investment process, and 95% (55%) collect ESG-related sustainability data
The survey sample included Finnish VC & PE investors with a fund in the investment or value creation phase in Tesi’s portfolio at the time of the study. The 2025 survey received responses from 42 VC & PE firms, compared to 32 in 2022. Over 90% of respondents participated in both surveys. The participating investors represent over 90% of Finland’s venture capital and private equity market.
Explore the full survey results.
Additional information:
Selja Ryöppy, Sustainability Manager
selja.ryoppy@tesi.fi
+358 45 7833 2124
Tesi (officially Finnish Industry Investment Ltd) is a state-owned, market-driven investment company that invests in venture capital and private equity funds and directly in Finnish startups and growth companies, and to new industrial scale businesses. tesi.fi | X (Twitter) | LinkedIn | Instagram | Bluesky | Threads | Newsletter