Do private equity investors value ESG and SDGs? Evidence from Tunisia

Purpose This study aims to explore the perceptions of Environmental, Social and Governance (ESG) principles by private equity investors in Tunisia and evaluate how these perceptions are aligned with the United Nations Sustainable Development Goals (SDGs). Design/methodology/approach Semi-structured interviews were conducted with private equity investors operating in Tunisia to assess their level of understanding and awareness of ESG concepts and their expectations regarding the adoption of ESG criteria in their investment decisions. Findings This study reveals that while private equity (PE) investors in Tunisia are familiar with sustainability principles, their knowledge of ESG concepts is limited. ESG criteria are generally not incorporated into investment decisions unless mandated by foreign partners. The findings of this study also indicate that most Tunisian PE investors emphasize the importance of aligning ESG principles with the Sustainable Development Goals (SDGs) to meet international standards and remain competitive in raising global funds and forming partnerships with foreign partners. Research limitations/implications Despite the insightful findings, this study has limitations primarily because of its qualitative nature and relatively small sample size. Conducting extensive quantitative research involving a broader range from the PE ecosystem would provide deeper insights into the integration of ESG principles in Tunisia. Originality/value This study provides valuable insights into ESG perceptions within a specific investor niche – the PE industry – and contributes to the limited body of literature on ESG, particularly in emerging markets like Tunisia.