ESG in Private Equity

We conduct rigorous ESG due diligence using a three-step approach augmented by deep dives into specific and emerging areas of relevance. We also apply our proprietary, modular benchmarking and risk analysis tool; powered by generative AI, it provides a quick starting point for assessing a broad range of ESG implications for diligence. Our industry analysis goes beyond the identification of material topics to include critical stakeholder perspectives, and we keep value creation opportunities front and center.  

We can help you:

• Prioritize the themes where ESG leadership can drive value creation
• Understand how a target is positioned compared with peers and best-in-class companies
• Analyze key ESG risks and mitigation actions
• Address carbon readiness, circularity, DEI, and other important elements of your ESG strategy

Our tailored, battle-tested approach pinpoints the ESG areas that provide a competitive edge, as well as those that must be addressed from a compliance perspective. We help you set the right value targets and map a clear plan to reach them. We also analyze your current carbon footprint and create a bankable plan that includes critical enablers, KPIs, and other elements of effective mobilization.

We can help you:

• Define a strong ESG ambition that addresses company and societal impacts
• Engage and align the organization behind that ambition
• Develop a detailed roadmap
• Efficiently execute the specific actions that advance your ESG vision
• Further quantify and refine the value at stake and investment required to achieve your goals
• Measure carbon abatement costs, potential subsidies, expansion opportunities, and other sources of value creation

Almost every ESG fund strategy is different, which is why we apply a tailored, three-tiered approach. We build a strategic fact base to help you set your ESG ambition, work with you to formulate a strategy and translate it into day-to-day operations, and ensure that it can be applied to portfolio companies and diligence efforts. All in six to eight weeks.

We can help you:

• Define ESG focus issues across the portfolio
• Conduct historical deal analysis to understand current drivers of ESG performance
• Map LP priorities
• Define “what good looks like” when applying strategy
• Iteratively refine your ESG strategy as needed

We have deep experience in climate investing due diligence and sector scans, with ~500 engagements completed globally between 2019 and 2023. 

We can help you:

• Build depth on a few selective key themes and technologies
• Think creatively and expansively in building asset pipelines
• Double-down on regulatory exposures and outlook, and evaluate asset performance under alternative scenarios
• Understand the value proposition and willingness to pay by customer/consumer segment
• Reserve M&A capacity for technology acquisition or access early in ownsership, and/or be more open and proactive in building partnerships
• Enhance the management team to fill gaps