ESG Management during Investment Ownership
During the ownership and operation of a business, private equity firms must ensure they meet their investor’s Environmental, Social & Governance (ESG) requirements to protect asset value. Embedding ESG into core business functions can reveal opportunities for maximising your portfolio company’s value and outcomes. Failing to meet the ESG expectations of governments, employees, and customers may trigger major legal, reputational, and financial costs.
Demonstrating ESG integration
Good ESG practices are good business practices. And ESG initiatives are most impactful when integrated into the core business strategy. The ESG strategy should be tailored to the needs and context of each portfolio company, with goals and standards specifically chosen to identify risks and opportunities.
By shaping strategies that maximize results, we help clients demonstrate ESG performance across their portfolio companies’ direct and indirect impact, including:
- supply chains
- product stewardship
- direct environmental and social business impacts
- employee culture and labour practices
ESG performance tracking
ESG key performance indicators (KPIs)Â allow a company to measure progress and compare performance to industry benchmarks. Appropriate KPIs will act as a measure of business health and should be tailored to the: product and service offering, regulatory environment, geographic footprint, industry, position in the value chain, and extent of horizontal and vertical integration.
We help firms identify and validate appropriate ESG metrics for each of their portfolio companies. Making reporting easy, our advisory service is supported by a bespoke dashboard to track performance against KPIs (part of our ComplianceMap tool).
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For private equity firms, our platform provides a centralised online platform for managing KPIs at portfolio, company, and site-specific level. Shaped to suit your needs, your custom dashboard will connect ESG data across each of your portfolio companies, ensuring alignment with firm-level ESG policies and goals.
The value of ESG investing
By implementing and continually assessing their ESG strategy, companies can identify preventable expenses and untapped opportunities for improvement, unlocking the potential for value protection and creation.
The value of ESG investing:
- Increase ROI and market share
- Reduce expenses and liability
- Improve employee retention
- Meet customers’ and investors’ sustainability expectations
- Enhance firm and portfolio company reputation
Uniquely positioned as both strategic advisors and technical consultants, we identify, manage and execute ESG initiatives; enabling you to create value with confidence
Our approach
Ready to help our clients identify the ESG issues that truly matter to them, we develop frameworks and strategies to maximize clients' results during ownership.
We help our clients identify and address ESG issues to:
- Increase ROI
- Minimize risk
- Reduce expenses
- Improve employee retention
- Avoid business disruption
- Reduce regulatory liability
- Meet customers’ sustainability expectations
- Increase market share
- Satisfy LPs expectations
- Enhance GP and company reputation
How we can help
Wherever you are in the investment process, we’re here to help you integrate ESG considerations into your business fundamentals to create long-term value.
ESG Services
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