- Private equity (PE) is uniquely well-positioned to take a leading role in sustainable investing.
Regulatory pressures, LP demands, and the financial value of sustainability performance are increasingly pushing PE firms to improve their sustainable practices.
Firms should start with a baseline understanding of their own material topics, and articulate the impact they intend to make, supported by investment beliefs of how this can be done in a financially robust way.
Firms can work to mature their investment processes, for example by incorporating both positive and negative screening criteria, improving sustainability risks quantification within the portfolio, and defining processes for active ownership.
Delivering on all the above requires firms to secure and manage their data better, engage their people effectively, and ensure transparency to impacted stakeholders, among other key enablers.
Read the full article at: www.deloitte.com
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