How we can help

Sustainability in Private Equity

Helping clients realize full value from ESG is at the heart of everything we do. Our unrivaled integrated capabilities span the entire value chain, from due diligence to exit and every step in between.

Our holistic approach to ESG value creation is designed to help you generate quantifiable results across every facet of your investment strategy, so that you raise, invest, own, and exit better. We’ll help you join the ranks of leading investors, those companies that are driving positive outcomes across the full spectrum of ESG considerations: decarbonization, waste reduction, sustainable sourcing, diversity and inclusion, and more. With more than 60 partners and associate partners experienced in both private equity and ESG, we provide deep expertise as well as the tools and Bain Academy training you need to embed the appropriate ESG considerations into every investment decision. The results: a robust fund strategy that can create more value for internal and external stakeholders, their communities, and the planet.

Our Experience

600+

PE cases since 2021 that include ESG considerations

40+

leading investors have discussed ESG strategies with us

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

Partnerships

We have 20+ partnerships across the sustainability ecosystem, enabling us to tap into specialized expertise, data, and experience on a range of ESG topics. Some of these partnerships and alliances include the World Economic Forum, Glasgow Financial Alliance for Net Zero, International Association of Credit Portfolio Managers, Institutional Limited Partners Association, and many others. For more information follow the links below.