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  • 1.  Value creation through ESG in private markets

    Posted 20-09-2023 09:28


    *** This has been posted in the Impact Investing Special Interest Group. Feel free to continue the discussion in the Special Interest Group or start over in this Community ***

    After working several years on a public Article 8 and Article 9 (SFDR) equities fund with the responsibility for implementing best-in-class ESG levers, I would like to learn more about how Private Equity (or other private market companies) implement ESG to drive value creation. I am especially interested in learning about the practical/operational elements of such implementation, rather than the technical decreased cost of capital side. 

    I appreciate if anyone with experience in this field could share their experiences with in-house playbooks, case studies and operational challenges (all within the public domain, of course). Furthermore, with a rapid development in the ESG area over the past few years, how often is best practice playbooks reviewed and updated, does most PE companies have an internal ESG team (similar to i.e. 'Digitalization' team) working across all portfolio companies to implement best practices, and how is 'ESG specific' value creation measured?

    While some levers do exist (i.e. measuring emissions), I still do find ESG integration to be highly subjective and abstract in its nature due to lack of standardization and available data.



    Tarjei Lode

  • 2.  RE: Value creation through ESG in private markets

    Posted 20-09-2023 10:33
    Edited by Aya Pariy 20-09-2023 10:35
      |   view attached

    Hello Tarjei,

    Thanks so much for posting this here as well - I am encouraging other members to share their thoughts and help. This is really the fundamental topic.

    Perhaps this could be useful too? We have a professional learning video from Mark Belsey, Senior Healthcare Investment Analyst at NNIP where he is demonstrating methodologies for incorporating ESG factors and how they do it while analysing European equity  (pharmaceutical markets).

    Here's the link to a video (this is 0.25 CPD) and the transcripts attached

    Look forward to seeing how this discussion develops further and thanks again for posting!

    Aya Pariy