We provide full ESG reporting services for PE, hedge funds and institutional investors.
As part of our broad ESG offering to financial services companies, we can help you maximise value through effective reporting. With a wealth of experience in collecting, analysing and reporting on ESG performance in investee companies, we can make reporting easier and more effective, demonstrating to your investors both ESG compliance and how you add value through active ESG management.
ESG reporting in Private Equity
The private equity sector has historically focussed on environmental, social and governance (ESG) compliance, but there is a growing consensus in the industry that there is a strong business case for managing ESG actively to deliver strategic value.
There are four key reasons for more active ESG management in private equity:
- Enhance risk identification and management,
- Realise additional value creation opportunities,
- Demonstrate integrity, and
- Improve asset valuation process, including potential enhanced exit premiums.
Limited partners and institutional investors are increasingly interested in ESG issues. They recognise the value that can be added through active ESG management and are taking increasingly strategic positions on ESG issues such as carbon and climate change.
The number of investors who are UNPRI signatories is increasing steadily and there is concern amongst asset managers that the information requests for non-financial information are proliferating.
Whilst some PE firms have started to report on ESG issues, either through the UNPRI or through stand-alone reports, there remain significant opportunities to improve not only the quality of disclosure, but how well the reports communicate to investors the ways that ESG is adding to portfolio performance.