This sentiment is driven by concerns including competition for assets, valuations and rising interest rates.
Thirty percent of fund managers across all alternative asset classes said they have an active ESG policy.
Private equity holds the highest share at 43%, followed by private debt and infrastructure at 39%. Hedge funds (30%) lag behind in this area for the second year in a row.
Nearly three quarters (72%) believe that fund managers are adopting ESG policies due to pressure from existing and potential LPs as in previous years.
However, political pressure can also be considered a factor in the development of ESG ideas, as investors ranked it as the third most important factor in a previous survey, ranking seventh.