While private firms are continuing to make progress on sustainability and decarbonisation despite a challenging macro environment, many have yet to put in place governance measures to manage the risks associated with AI, a new report by BCG has suggested.
The report, Sustainability in Private Markets, 2026: As Progress Continues, AI Poses New Risks and Opportunities, was produced in collaboration with the ESG Data Convergence Initiative (EDCI).
According to BCG, private firms are reducing Scope 1 and Scope 2 emissions intensity at ‘materially faster’ rates than public companies, which is having a ‘significant’ value creation impact. In addition, the number of private firms establishing decarbonisation strategies has increased, it noted.
ESG strategy
The report notes that AI adoption is accelerating across private markets and ‘impacting every aspect’ of ESG strategy among private firms.
From an environmental perspective, while much of the attention in the short term is on the emissions generated by AI’s demand for computing power, BCG suggests that AI could generate around $600 billion in annual global value by 2028 across established sustainability sectors, while helping to reduce emissions, waste and resource use.
In terms of the social aspect, BCG said in its report that it expects that up to 55% of US jobs could be ‘meaningfully reshaped’ by AI, with significant changes to how people work.
With regard to governance, meanwhile – the main focus of the report – BCG said a significant proportion of private companies ‘have not yet made the preparations necessary to protect themselves from a growing range of cybersecurity risks or established the new governance mechanisms needed to oversee the safe and effective adoption of AI’.
It added that private firms, along with the investment funds that own them, which address both the risks and potential benefits of AI will be better positioned to protect and create value. Read more here.
