ESG (Environmental, Social and Governance) initiatives within Private Equity have become a crucial asset for the firms and their portfolio companies. Though these initiatives have been around for some time in other industries and public sector, we are currently seeing a gradual implementation of these ESG programs within Private Equity focusing on the firm’s values as well as shaping investment strategies.
After attending the PE Innovators in ESG virtual event, I have seen a mindset shift from Private Equity firms showing that investing in companies that are limiting their carbon footprint, growing their diversity and inclusion capacities, and implementing ESG solutions for reporting is becoming essential while maintaining growth within the firm and their portfolio companies.
When it comes to implementing these ESG programs, stakeholders have a major impact in contributing to these initiatives. Whether it is investing in ESG platforms or prioritizing programs to promote the ESG vision at a firm or a portfolio company, it all starts with the stakeholders. Including feedback from employees and/or customers in the decisions stakeholders make is critical to create a solid foundation in ESG initiatives across the firm. Our Co-Founder & Partner at Treya Partners, Rahul Ahuja, contributed to a conversation about ESG and the importance of stakeholder involvement which you can watch by via link below.
PE Innovators in ESG Speak: ESG Starts with Stakeholders Panel
By: Ryan Peterson, Treya Partners Business Development Manager