The ESG landscape for U.S. private equity firms is increasingly defined by systemic governance pressure and rising social and environmental scrutiny. Governance issues at firms such as Blackstone, KKR, Thoma Bravo, TPG, and Francisco Partners primarily focus on deal processes, disclosure practices, and investor protection. These concerns encompass settlements related to pension mismanagement, actions taken by the Department of Justice regarding pre-merger filings, as well as lawsuits and shareholder investigations examining the fairness of take-private transactions and stock buybacks. On the social side, exposure is driven largely by portfolio companies and political positioning. Housing and tenant-rights disputes sit alongside allegations of labor abuses, child labor, and unsafe conditions. Environmental concerns are increasingly prominent, with major companies facing criticism for their exposure to fossil fuels, their impact on climate change, and associated lobbying efforts.
What are the most pressing ESG challenges currently facing the U.S. private equity firms? Read on to find out.
Blackstone: Governance Pressure, Social Backlash, and Climate Criticism
Blackstone is facing a wide range of ESG controversies. Governance challenges include a $227.5 million settlement related to Kentucky pension mismanagement, a $590 million lawsuit involving SPAC Recovery Co. that alleges a fraudulent scheme, and SEC fines tied to off-channel communications failures. On the social front, the firm has drawn criticism for political spending that heavily favors right-leaning candidates, child-labor incidents, and recurring safety violations at portfolio companies. Housing-related concerns also persist, with tenant protests over rent and eviction practices and university movements calling for divestment from Blackstone-linked real estate funds. Environmentally, Blackstone continues to be targeted by climate activists for its fossil fuel exposure and its perceived contribution to escalating climate risks.
Key Controversies:
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- Kentucky pension mismanagement lawsuit settled for $227.5 million
- SPAC Recovery Co. Files $590 Million Lawsuit Against Blackstone
- Kelly Ayotte’s oversight failures blamed for child labor abuses at Blackstone-backed company
- Stuy Town tenants win lawsuit to keep apartments rent stabilized
- Blackstone CEO Stephen Schwarzman Is Targeted at His New York Home by Climate Activists
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