Advent to Screen for Green Assets as Private Equity Embraces ESG

Private equity firm Advent Internationalplans to adopt new guidelines created by S&P Global Inc. to help it gauge the green credentials of its investments.

Pressure is building on asset managers to find a reliable measure to establish which investments include environmental, social and corporate governance features and which ones don’t. Regulators have been slow to create rules for the burgeoning market, risking so-called greenwashing as managers tap surging investor demand for the products.

That’s in turn creating demand for ESG consulting services from the likes of S&P, MSCI Inc. and Morningstar Inc.’s Sustainalytics unit. S&P’s deal with Advent ...