The document summarizes the findings of a survey conducted by PwC on responsible investment and ESG management in the private equity industry. Some key findings include:
- 79% of private equity houses believe investor interest in ESG issues will increase in the next two years. 71% include ESG management in due diligence when acquiring companies. However, less than 15% calculate the value created through ESG activity.
- Risk management is the top driver for ESG management according to 36% of respondents, followed by investor pressure at 24% and identifying opportunities at 15%.
- ESG management is more developed in Europe, with 68% of houses having a partner responsible for ESG issues compared to 31
ESG investing leads to sustainability and ethical business practices but does ESG investing work when you want to make money? While this way to invest is a positive social force, does ESG investing work to increase your investment assets? Or is it a way to give to charitable causes while being disguised as a way to invest? Will you make money investing this way or would you do better simply giving your money to a cause that you support?
https://youtu.be/YXdOIB5uV_8
Environmental, Social and Governance (ESG) investing is bringing a new lens to the world of traditional investment management. ESG is increasingly becoming a key decision criterion within the institutional and retail channels as investors seek to ensure that their investments align with their values. In this webinar, we will provide a unique understanding of distribution trends driven by ESG criteria vital to product development and sales strategies for Asset Managers.
Broadridge has partnered with MSCI ESG Research to provide Asset Managers with access to ESG factors for funds. On this webinar, we will provide a detailed overview of ESG investment trends as well as present an overview of a unique set of data that provides ESG transparency on more than 27,000 funds.
By David F. Larcker, Brian Tayan, Dottie Schindlinger and Anne Kors, CGRI Survey Series. Corporate Governance Research Initiative, Stanford Rock Center for Corporate Governance and the Diligent Institute, November 2019
New research from the Rock Center for Corporate Governance at Stanford University and the Diligent Institute finds that corporate directors are not as shareholder-centric as commonly believed and that companies do not put the needs of shareholders significantly above the needs of their employees or society at large. Instead, directors pay considerable attention to important stakeholders—particularly their workforce—and take the interests of these groups into account as part of their long-term business planning.
• While directors are largely satisfied with their ESG-related efforts, they do not believe the outside world understands or appreciates the work they do.
• Directors recognize that tensions exist between shareholder and stakeholder interests. That said,
most believe their companies successfully balance this tension.
• In general, directors reject the view that their companies have a short-term investment horizon in
running their businesses.
In the summer of 2019, the Diligent Institute and the Rock Center for Corporate Governance at Stanford University surveyed nearly 200 directors of public and private corporations globally to better understand how they balance shareholder and stakeholder needs.
Etude PwC "Bridging the gap" sur les investisseurs institutionnels (mai 2015)PwC France
Selon la dernière étude du cabinet d’audit et de conseil PwC, intitulée « Bridging the gap », sept investisseurs institutionnels sur dix (70 %) – parmi les 60 qui ont été interrogés par PwC au plan mondial – affirment qu’ils refuseraient de participer à une levée de fonds de private equity ou à un co-investissement si ceux-ci présentaient un risque environnemental, social ou de gouvernance.
Méthodologie :
Pour réaliser cette étude, PwC a mené des entretiens individuels avec 60 commanditaires de 14 pays, totalisant quelque 500 milliards USD d’allocation aux gérants ou general partners (GP) de fonds de private equity. Les participants à l’enquête ont répondu sur la base du volontariat, d’où une surreprésentation probable des investisseurs relativement avancés dans leur approche de l’investissement responsable. Le panel était composé à 30 % de fonds de pension, à 20 % de gestionnaires d’actifs et à 7 % de fonds souverains ou publics. Parmi les répondants figuraient de grands fonds de pension du monde entier, comme le CalSTRS (caisse de retraite de l’enseignement public de Californie), l’USS (caisse de retraite de l’enseignement supérieur britannique), la caisse de retraite de BT, le West Midlands Pension Fund, le Wellcome Trust, un fonds de pension suédois et des fonds confessionnels aux États-Unis et en Finlande. Parmi les principaux gestionnaires d’actifs figuraient les sociétés Aberdeen, Hermes GPE, F&C et BlackRock. 7 investisseurs français ont aussi participé à cette étude comme par exemple BPI France, Ardian ou OFI Asset Management (devenu depuis SWEN Capital Partners).
Responsible investment is rapidly becoming a mainstream concern within the investment industry. The dramatic growth in the number of investors who have adopted the Principles for Responsible Investment (PRI) is only the latest indicator of the increased attention the sector is paying to the integration of environmental, social and governance (ESG) factors into investment management.
Too often environmental, social and governance (ESG) initiatives are simply looked at through a compliance and risk management prism. But this ignores the real opportunity that embracing and managing ESG issues presents - that of enhancing business value. This presentation lays out the service value chain and brand value linkages while illustrating how strong ESG performance translates to superior market performance.
ESG integration in Equities and Fixed IncomeNawar Alsaadi
ESG Integration Case Studies, a presentation by Nawar Alsaadi of more than 30 ESG integration case studies (Equities and Fixed Income) by a host of asset managers and asset owners around the world. (The work is derived from a CFA Institute and UN-PRI paper entitled Guidance and Case Studies for ESG Integration: Equities and Fixed Income).
ESG investing leads to sustainability and ethical business practices but does ESG investing work when you want to make money? While this way to invest is a positive social force, does ESG investing work to increase your investment assets? Or is it a way to give to charitable causes while being disguised as a way to invest? Will you make money investing this way or would you do better simply giving your money to a cause that you support?
https://youtu.be/YXdOIB5uV_8
Environmental, Social and Governance (ESG) investing is bringing a new lens to the world of traditional investment management. ESG is increasingly becoming a key decision criterion within the institutional and retail channels as investors seek to ensure that their investments align with their values. In this webinar, we will provide a unique understanding of distribution trends driven by ESG criteria vital to product development and sales strategies for Asset Managers.
Broadridge has partnered with MSCI ESG Research to provide Asset Managers with access to ESG factors for funds. On this webinar, we will provide a detailed overview of ESG investment trends as well as present an overview of a unique set of data that provides ESG transparency on more than 27,000 funds.
By David F. Larcker, Brian Tayan, Dottie Schindlinger and Anne Kors, CGRI Survey Series. Corporate Governance Research Initiative, Stanford Rock Center for Corporate Governance and the Diligent Institute, November 2019
New research from the Rock Center for Corporate Governance at Stanford University and the Diligent Institute finds that corporate directors are not as shareholder-centric as commonly believed and that companies do not put the needs of shareholders significantly above the needs of their employees or society at large. Instead, directors pay considerable attention to important stakeholders—particularly their workforce—and take the interests of these groups into account as part of their long-term business planning.
• While directors are largely satisfied with their ESG-related efforts, they do not believe the outside world understands or appreciates the work they do.
• Directors recognize that tensions exist between shareholder and stakeholder interests. That said,
most believe their companies successfully balance this tension.
• In general, directors reject the view that their companies have a short-term investment horizon in
running their businesses.
In the summer of 2019, the Diligent Institute and the Rock Center for Corporate Governance at Stanford University surveyed nearly 200 directors of public and private corporations globally to better understand how they balance shareholder and stakeholder needs.
Etude PwC "Bridging the gap" sur les investisseurs institutionnels (mai 2015)PwC France
Selon la dernière étude du cabinet d’audit et de conseil PwC, intitulée « Bridging the gap », sept investisseurs institutionnels sur dix (70 %) – parmi les 60 qui ont été interrogés par PwC au plan mondial – affirment qu’ils refuseraient de participer à une levée de fonds de private equity ou à un co-investissement si ceux-ci présentaient un risque environnemental, social ou de gouvernance.
Méthodologie :
Pour réaliser cette étude, PwC a mené des entretiens individuels avec 60 commanditaires de 14 pays, totalisant quelque 500 milliards USD d’allocation aux gérants ou general partners (GP) de fonds de private equity. Les participants à l’enquête ont répondu sur la base du volontariat, d’où une surreprésentation probable des investisseurs relativement avancés dans leur approche de l’investissement responsable. Le panel était composé à 30 % de fonds de pension, à 20 % de gestionnaires d’actifs et à 7 % de fonds souverains ou publics. Parmi les répondants figuraient de grands fonds de pension du monde entier, comme le CalSTRS (caisse de retraite de l’enseignement public de Californie), l’USS (caisse de retraite de l’enseignement supérieur britannique), la caisse de retraite de BT, le West Midlands Pension Fund, le Wellcome Trust, un fonds de pension suédois et des fonds confessionnels aux États-Unis et en Finlande. Parmi les principaux gestionnaires d’actifs figuraient les sociétés Aberdeen, Hermes GPE, F&C et BlackRock. 7 investisseurs français ont aussi participé à cette étude comme par exemple BPI France, Ardian ou OFI Asset Management (devenu depuis SWEN Capital Partners).
Responsible investment is rapidly becoming a mainstream concern within the investment industry. The dramatic growth in the number of investors who have adopted the Principles for Responsible Investment (PRI) is only the latest indicator of the increased attention the sector is paying to the integration of environmental, social and governance (ESG) factors into investment management.
Too often environmental, social and governance (ESG) initiatives are simply looked at through a compliance and risk management prism. But this ignores the real opportunity that embracing and managing ESG issues presents - that of enhancing business value. This presentation lays out the service value chain and brand value linkages while illustrating how strong ESG performance translates to superior market performance.
ESG integration in Equities and Fixed IncomeNawar Alsaadi
ESG Integration Case Studies, a presentation by Nawar Alsaadi of more than 30 ESG integration case studies (Equities and Fixed Income) by a host of asset managers and asset owners around the world. (The work is derived from a CFA Institute and UN-PRI paper entitled Guidance and Case Studies for ESG Integration: Equities and Fixed Income).
What is an ESG Audit?
Environmental, social and governance (ESG) risks are inevitable for every business. But how these issues are collected, managed and reported are what will make the difference between a company that is prepared or not.
A common perception is that sustainable investing means having to settle for lower returns. But by investing in a cheap and efficient way, it's possible to match the market return or even better it.
Here is a slide deck on environmental and social governance investing. This is a long tern investment strategy that plays a large role in helping influence companies to take care of the environment around us.
2020, the latest developments in Environment, Social and Governance investingnetwealthInvest
In this presentation, we discuss current ESG themes, including regulatory changes and key environmental, social and governance factors that investors need to understand in 2020.
This white paper was the culmination of a series of webinars and in-person conversations with corporate practitioners in the sustainability field. It provides the end user with an understanding of the ESG ratings and rankings field and helps prioritize engagement with the most influential organizations in the field.
The Evolution of Aggregation and Reporting of ESG Data: Observations from a L...Sustainable Brands
Bloomberg is a rather unique player in the sustainability space – it is an aggregator and provider of ESG data, a media outlet following and analyzing key developments in the space, and a company with sustainability-minded leadership that just issued an impact report following both GRI and SASB reporting standards, all in one. In this presentation, Bloomberg LP’s Global Head of Sustainable Business & Finance Curtis Ravenel will share his latest observations on overall progress in aggregating and reporting ESG performance data.
Green is the new black: The different shades of ethical investingnetwealthInvest
Find out how to align your investments with your values. This presentation with Dr Stuart Palmer, head of ethics research at Australian Ethical Investment, aims to help investors break through the greenwash and provide an overview of the different ways that responsible funds incorporate social and environmental impacts into their strategy.
Corporate Responsibility 2018 Aura Solution Company Limitedgannuu999
In our role as a global financial services company, we dedicate our people, resources and ideas to investor success and economic progress. Our impact also extends beyond the business of
investing. By committing to social and environmental
stewardship, human rights and responsible conduct, we hope to
strengthen our communities and serve the greater good.
These are the key facts and figures within the life sciences industry. Information ranges from the top performing countries in life sciences particularly in biotechnology and healthcare (biomedical and pharmaceutical). In addition, it addresses R&D expenditures by key countries from the year 2008 to 2016.
http://finishedexams.com/homework_text.php?cat=3377
Immediate access to solutions for ENTIRE COURSES, FINAL EXAMS and HOMEWORKS “RATED A+" - Without Registration!
Draft agenda for an upcoming conference on the key measurements that have meaning in the field of corporate sustainability and how some or all of them can and might be valued by investors, and incorporated into investment decisions
Future of Work in Investment ManagementCFA Institute
The state of work – what we do, where we do it, and how it gets done – looks undeniably different today than just a year ago. The forced reality of remote working due to the pandemic has made leaders and employees think more carefully about what investment careers could look like going forward. The short-term changes have prompted firms to update their technology to enable a work-from-anywhere (WFA) environment, but what are the longer-term implications of this disruption?
CFA Institute offers the first in-depth study examining the new work parameters for the investment industry in a multi-part research series, Future of Work in Investment Management.
Etude PwC sur les IPO transfrontalières (2012)PwC France
http://pwc.to/Vd93ha
Entre 2002 et 2011, les IPO transfrontalières ont représenté 9 % (1 172) du nombre total d’opérations et 13 % (220 milliards de dollars) du montant total levé dans le monde. Ces dix ans ont été marqués par une augmentation du nombre d’entreprises asiatiques réalisant des IPO transfrontalières. Les entreprises chinoises sont arrivées en tête avec 30 % (347) des IPO transfrontalières et 29 milliards de dollars levés.
http://www.pwc.fr/europe.html
L’étude « IPO Watch Europe» analyse chaque trimestre les introductions en bourse sur les principaux marchés et segments de marchés en Europe ainsi que la Suisse et la Norvège. Les mouvements entre segments de marché d’une même bourse et les offres de type « greenshoe » (rallonge) sont exclus. Cette étude, qui a été menée entre le 1er juillet et le 30 septembre 2012, analyse les introductions en bourse d'après leur date d'admission à la cote. Toutes les données de marché proviennent des bourses elles-mêmes ; PwC n’a pas procédé à une vérification indépendante de ces données.
What is an ESG Audit?
Environmental, social and governance (ESG) risks are inevitable for every business. But how these issues are collected, managed and reported are what will make the difference between a company that is prepared or not.
A common perception is that sustainable investing means having to settle for lower returns. But by investing in a cheap and efficient way, it's possible to match the market return or even better it.
Here is a slide deck on environmental and social governance investing. This is a long tern investment strategy that plays a large role in helping influence companies to take care of the environment around us.
2020, the latest developments in Environment, Social and Governance investingnetwealthInvest
In this presentation, we discuss current ESG themes, including regulatory changes and key environmental, social and governance factors that investors need to understand in 2020.
This white paper was the culmination of a series of webinars and in-person conversations with corporate practitioners in the sustainability field. It provides the end user with an understanding of the ESG ratings and rankings field and helps prioritize engagement with the most influential organizations in the field.
The Evolution of Aggregation and Reporting of ESG Data: Observations from a L...Sustainable Brands
Bloomberg is a rather unique player in the sustainability space – it is an aggregator and provider of ESG data, a media outlet following and analyzing key developments in the space, and a company with sustainability-minded leadership that just issued an impact report following both GRI and SASB reporting standards, all in one. In this presentation, Bloomberg LP’s Global Head of Sustainable Business & Finance Curtis Ravenel will share his latest observations on overall progress in aggregating and reporting ESG performance data.
Green is the new black: The different shades of ethical investingnetwealthInvest
Find out how to align your investments with your values. This presentation with Dr Stuart Palmer, head of ethics research at Australian Ethical Investment, aims to help investors break through the greenwash and provide an overview of the different ways that responsible funds incorporate social and environmental impacts into their strategy.
Corporate Responsibility 2018 Aura Solution Company Limitedgannuu999
In our role as a global financial services company, we dedicate our people, resources and ideas to investor success and economic progress. Our impact also extends beyond the business of
investing. By committing to social and environmental
stewardship, human rights and responsible conduct, we hope to
strengthen our communities and serve the greater good.
These are the key facts and figures within the life sciences industry. Information ranges from the top performing countries in life sciences particularly in biotechnology and healthcare (biomedical and pharmaceutical). In addition, it addresses R&D expenditures by key countries from the year 2008 to 2016.
http://finishedexams.com/homework_text.php?cat=3377
Immediate access to solutions for ENTIRE COURSES, FINAL EXAMS and HOMEWORKS “RATED A+" - Without Registration!
Draft agenda for an upcoming conference on the key measurements that have meaning in the field of corporate sustainability and how some or all of them can and might be valued by investors, and incorporated into investment decisions
Future of Work in Investment ManagementCFA Institute
The state of work – what we do, where we do it, and how it gets done – looks undeniably different today than just a year ago. The forced reality of remote working due to the pandemic has made leaders and employees think more carefully about what investment careers could look like going forward. The short-term changes have prompted firms to update their technology to enable a work-from-anywhere (WFA) environment, but what are the longer-term implications of this disruption?
CFA Institute offers the first in-depth study examining the new work parameters for the investment industry in a multi-part research series, Future of Work in Investment Management.
Etude PwC sur les IPO transfrontalières (2012)PwC France
http://pwc.to/Vd93ha
Entre 2002 et 2011, les IPO transfrontalières ont représenté 9 % (1 172) du nombre total d’opérations et 13 % (220 milliards de dollars) du montant total levé dans le monde. Ces dix ans ont été marqués par une augmentation du nombre d’entreprises asiatiques réalisant des IPO transfrontalières. Les entreprises chinoises sont arrivées en tête avec 30 % (347) des IPO transfrontalières et 29 milliards de dollars levés.
http://www.pwc.fr/europe.html
L’étude « IPO Watch Europe» analyse chaque trimestre les introductions en bourse sur les principaux marchés et segments de marchés en Europe ainsi que la Suisse et la Norvège. Les mouvements entre segments de marché d’une même bourse et les offres de type « greenshoe » (rallonge) sont exclus. Cette étude, qui a été menée entre le 1er juillet et le 30 septembre 2012, analyse les introductions en bourse d'après leur date d'admission à la cote. Toutes les données de marché proviennent des bourses elles-mêmes ; PwC n’a pas procédé à une vérification indépendante de ces données.
http://www.pwc.fr/ipo-watch-europe-survey-q4-2012.html
La valeur des introductions en bourse en Europe a bondi de plus de 700 % sur un an au quatrième trimestre 2012, atteignant un niveau inégalé depuis le 3ème trimestre 2011, durant lequel avaient été enregistrées 121 introductions pour un montant de 9,3 milliards d’euros. Au 4ème trimestre 2012, 70 introductions en bourse ont permis de lever 7,5 milliards d’euros, contre 78 introductions et 0,9 milliard d’euros un an plus tôt.
Etude PwC sur l'immobilier commercial européen (2012)PwC France
http://pwc.to/SeLO4k
Les villes « refuge » comme Paris, Londres et les métropoles allemandes arrivent en tête des perspectives d’investissement pour le secteur de l’immobilier commercial en Europe. C’est ce que révèle l’édition européenne 2013 d’Emerging Trends in Real Estate® Europe 2013, publication sur les tendances et les prévisions établie conjointement par l’Urban Land Institute (ULI) et PwC. Le classement des 27 premières villes d’Europe, réalisé selon les prévisions de performance pour 2013, place Munich en tête du tableau et Paris en 6ème position.
Etude PwC sur les transactions sur les portefeuilles de créances (nov. 2014)PwC France
http://bit.ly/PortefeuillesCreances2014
D’après une étude publiée par le cabinet d’audit et de conseil PwC, 67 milliards d’euros de portefeuilles de créances (valeur faciale) ont été cédés par les banques européennes au cours des neuf premiers mois de l’année 2014.
PwC estime en outre à 50 milliards d’euros la valeur des portefeuilles faisant actuellement l’objet de transactions. La majeure partie de ces transactions devraient être conclues d’ici à la fin de l’année, ce qui signifie que la valeur des portefeuilles de créances non stratégiques cédés par les banques devrait largement dépasser 100 milliards d’euros en 2014, soit une hausse d’au moins 50% par rapport à 2013 (64 milliards d’euros).
Etude PwC sur les fusions-acquisitions en Chine (2013)PwC France
http://pwc.to/XoaDIh
La conjonction des incertitudes sur l’économie mondiale et de problèmatiques internes à la Chine ont entraîné une baisse des investissements en Chine. Ceux-ci ont atteint en 2012 leur plus bas niveau depuis cinq ans, avec un repli encore plus marqué qu’au lendemain de la crise financière de 2009. Ainsi, les fusions-acquisitions réalisées en Chine ont reculé de 23% en volume et de 28 % en valeur sur l’année 2012. En revanche, le montant des investissements chinois à l’étranger a augmenté de 54% en 2012 par rapport à 2011 pour s’établir à un niveau record de 65.2 milliards de dollars.
Etude PwC sur les priorités des dirigeants de l'industrie pharmaceutique (2013)PwC France
http://pwc.to/Zoghe7
Pour cette 16ème édition de l’étude mondiale annuelle de PwC “Dealing with disruption, 16th Annual Global CEO Survey”, 1330 chefs d’entreprise de 68 pays ont été interrogés entre septembre et décembre 2012. 90 dirigeants du secteur pharmaceutique et des sciences de la vie ont participé à l’enquête. PwC a également interrogé plus longuement Yasuchika Hasegawa, Président-Directeur Général de Takeda Pharmeutical Company Ltd. au Japon. Les résultats du secteur pharmaceutique et des sciences de la vie est disponible, ainsi que l’étude intégrale.
http://pwc.to/17VSZqK
Les marchés européens des IPO poursuivent leur essor :
- Deuxième meilleur trimestre depuis le troisième trimestre 2011
- Londres arrive une nouvelle fois en tête, avec quasiment la moitié du total des fonds levés
- Les introductions en bourse financées par des capitaux privés continuent de dominer le marché et représentent près de 60 % des fonds levés
Top 100 des capitalisations boursières mondiales (2013)PwC France
http://pwc.to/195XVWW
PwC a classé les 100 plus grandes entreprises mondiales en fonction de leur capitalisation boursière, puis a comparé leur progression annuelle entre mars 2008 et mars 2013.
Etude PwC Autofacts production automobile (fév. 2014)PwC France
http://pwc.to/LWb0fa
A l’ouverture du salon de New Delhi et en amont de celui de Genève, l’institut d’analyse PwC Autofacts publie ses dernières estimations : la production automobile mondiale devrait atteindre 87,4 millions de véhicules légers en 2014, soit une hausse de 5,8% par rapport à 2013.
Alors que l’Union Européenne devrait stopper sa chute et retrouver la croissance en 2014, la région de l’Asie-Pacifique en développement reste le moteur de la croissance automobile mondiale. Seule la région Asie-Pacifique développée (Japon, Corée du Sud, Océanie) poursuit sa baisse : PwC Autofacts y anticipe une perte d’environ 1,5% sur l’année.
Le monde en 2050 : les perspectives de PwC (2013)PwC France
http://pwc.to/V9rjZn
Selon le dernier rapport World in 2050 publié par PwC, la crise financière a accéléré le déplacement du centre de gravité de l’économie mondiale. La Chine, les États-Unis et l’Inde devraient conforter leur suprématie d’ici à 2050, mais les pays émergents n’en restent pas moins confrontés à d’immenses défis pour inscrire dans la durée leur forte croissance récente. Selon PwC, d’ici 2050, l’Indonésie, le Nigeria et le Vietnam pourraient connaître une progression spectaculaire ; le Brésil pourrait supplanter le Japon à la 4e place, et la Turquie pourrait s’imposer comme l’une des premières économies d’Europe.
Etude PwC sur la mobilité professionnelle d'ici à 2020 (2013)PwC France
http://pwc.to/VOdujF
La production de l’étude « Talent mobility 2020 and beyond » est le résultat de l’analyse de plusieurs sources sur le secteur de l’économie mondiale et des grandes entreprises.
L’étude reprend les réponses des 900 entreprises qui ont été interrogés sur les tendances de mobilité au cours des 20 dernières années et les résultats de la planification de scénarios testés avec plusieurs séries d’employés de demain sur l'avenir du travail à 2020. L’étude retranscrit aussi les entretiens des spécialistes des « talents » et de la mobilité PwC soutenus par les avis de plusieurs organisations mondiales dans le monde entier.
Etude PwC/Economist Intelligence Unit sur l'utilisation des data dans la pris...PwC France
http://bit.ly/DataAnalyticsPwC
La majorité des dirigeants interrogés dans le monde (94 %) indiquent que la direction de leur entreprise est armée pour prendre des décisions majeures concernant l'orientation stratégique de l'activité. Toutefois, à peine un tiers d'entre eux se sont appuyés en premier lieu sur des données et des outils analytiques pour prendre leur dernière grande décision ; 58 % des dirigeants se sont fiés à leur instinct ou à leur expérience, et ont fait appel aux conseils prodigués par d'autres collaborateurs de leur organisation.
http://pwc.to/1bAPmr1
L'étude « Socio-economic impact of mHealth » est une étude prospective réalisée par PwC, qui s'appuie sur une quantité importante de données permettant d'analyser l'impact économique de la m-Santé dans les 27 pays de l'Union européenne.
Organizations are identifying the importance of ESG investing. For ESG investing, independent assessments of the E, S, and G policies is also critical.
Material Engagement (with suppliment included)Nawar Alsaadi
Material Engagement is the missing link between the sharp growth in ESG aligned assets, and the lack of progress on many of the pressing environmental, social and governance issues facing humanity today. The sustainability priorities of Material Engagement are grounded in human rights by virtue of its focus on the 2030 UN Sustainable Development Goals (SDGs). Furthermore, by linking the SDGs to SASB’s Materiality Map, the Material Engagement approach provides the legal, commercial, and strategic impetus for companies to make the SDGs a reality. Said another way, Material Engagement is an approach that combines the heart (SDGs) with the brain (SASB) thus birthing a new sustainable business reality, one that’s rooted in human rights, and guided by the power and genius of private enterprise. In addition to its powerful intellectual and moral foundation, Material Engagement offers a turn-key sustainability engagement solution, with relevant KPIs, scope and milestones blueprints, clear timelines, escalation pathways, and communication methods. Material Engagement is the missing link between the world we have, and the world humanity deserves.
5 Benefits of ESG for Companies: What Is ESG and Why Is It Important?WNS Vuram
Discover the importance of ESG and the 5 benefits it can bring to your organization. Improve sustainability, attract investors, and enhance brand reputation. Learn more now. https://www.vuram.com/blog/benefits-of-esg-for-companies/
ESG is best characterized as a framework that helps stakeholders understand how an organization is managing risks and opportunities related to environmental, social, and governance criteria.
Investissement responsable : la création de valeur à partir des enjeux enviro...PwC France
PwC s'est entretenu avec 17 sociétés de capital-investissement, dont six figurent parmi les dix plus grandes sociétés mondiales de capital-investissement, 11 parmi les 50 plus grandes, et six parmi les sociétés de taille intermédiaire. 10 sociétés ont leur siège social en Europe et sept aux États-Unis. Sept des groupes sont signataires des Principes pour L'investissement Responsable de l'ONU. L'étude relève qu'un examen du processus de conformité pour les membres signataires des PRI était déjà en cours. Il est possible qu'à l'avenir une communication obligatoire soit exigée des signataires.
Retrouvez toutes nos publications : http://www.pwc.fr/publications
These slides discusses on the environmental, social and governance (ESG) factors for responsible investment. It briefly covers the ongoing crisis our world economy is dealing with today, which adversely affects business owners and investors alike.
By Brandon Boze, Margarita Krivitski, David F. Larcker, Brian Tayan, and Eva Zlotnicka
Stanford Closer Look Series
May 23, 2019
Recently, there has been debate among corporate managers, board of directors, and institutional investors around how best to incorporate ESG (environmental, social, and governance) factors into strategic and investment decision-making processes. In this Closer Look, we examine a framework informed by the experience of ValueAct Capital and include case examples.
We ask:
• What is the investment horizon prevalent among most companies today?
• Do companies miss long-term opportunities because of a focus on short-term costs?
• How many companies have an opportunity to profitably invest in ESG solutions?
• What factors determine whether a company can profitably invest in ESG solutions?
• Can investors earn competitive risk-adjusted returns through ESG investments?
• If so, how widespread is this opportunity?
Sustainable investing and ESG criteria are gaining traction around the world as more people and organizations recognize the critical role they play in fostering a more sustainable future. This article will explain what sustainable investing is, the significance of ESG criteria. I also explains how this approach can benefit the environment, society, and business practices.
Understanding Sustainable Investing
Defined Sustainable Investing Making financial investments in businesses or projects that aim to have long-term positive effects on the environment, society, and governance (ESG) is what sustainable investing entails. It seeks to align financial objectives with ethical and environmental principles.
The Three Bottom Lines: The concept of the triple bottom line, which includes three key elements: people (social), planet (environmental), and profit (economic), is a fundamental principle of sustainable investing. Investors assess the potential of an investment based on how well it affects these three factors.
The Significance of ESG Criteria
Introduction to ESG Criteria: Criteria for Environmental, Social, and Governance ESG is an acronym that stands for Environmental, Social, and Governance. Investors use these criteria to assess a company's operations and how it addresses key sustainability issues.
Environmental Criteria: Environmental Standards Environmental criteria assess a company's environmental impact. It takes into account things like carbon footprint, energy efficiency, waste management, and water usage. Investors look for companies that are committed to reducing their environmental footprint.
Social Criteria: Social criteria are concerned with a company's interactions with its employees, communities, and society as a whole. Labor practices, diversity and inclusion, employee well-being, and community engagement are all important considerations. Investors want to back companies that prioritize fairness and inclusion.
Criteria for Governance: The governance criteria of a company evaluate its leadership, ethics, and transparency. It includes aspects such as board structure, executive compensation, shareholder rights, and compliance with legal and ethical standards. Companies with strong governance practices are valued by investors.
Benefits of ESG Integration: The Advantages of ESG Integration Incorporating ESG criteria into investment decisions can result in a number of advantages. It assists in risk management by identifying potential issues with sustainability and corporate governance. Furthermore, companies with strong ESG performance frequently demonstrate long-term sustainability and resilience, which can translate to improved financial performance.
How Sustainable Investing Makes a Difference
Environmental Impact: Sustainable investing helps to create a greener future by allocating funds to environmentally responsible businesses and projects. This can result in less pollution, more conservation of natural resources.
Etude PwC sur l'intégration de facteurs ESG dans les activités de fusions-acq...PwC France
http://pwc.to/15JdJxV
De juin à octobre 2012, PwC a mené une étude visant à mesurer les attitudes de sociétés acquéreuses envers l’évaluation des risques et opportunités environnementaux, sociaux et de gouvernance (ESG) dans leurs activités de fusions-acquisitions. Pour réaliser cette enquête de la part de l’initiative PRI, PwC s’est entretenu avec 16 acquéreurs dans divers secteurs en approfondissant le thème de l’intégration de facteurs ESG dans le processus de due diligence, le prix de l’acquisition, les accords d’achat et de vente, et la période suivant l’acquisition.
The ES&G Accountability Forum (2013) provided participants and panelists with an opportunity to examine the question of how information (both financial and non-financial) can best be provided in a form that is useful to decision makers that are affected by, or have an affect on Canada’s companies.
This document captures key points made by panelists, their answers to questions posed, and the Forum’s participants’ table discussions. It is organized around each panel: investors, companies, evaluation organizations. We hope to encourage all groups to consider the advice and comments discussed at the Forum, and to take action on the outstanding questions and issues to improve the state of ES&G disclosure, analysis and investing that are highlighted on pages 9 & 10.
This year on September 23, 2014 in Calgary, many of these unanswered questions will be addressed at the ES&G Forum 2014: "Non-financial performance... A missed opportunity?"
Building on the last two years' discussions, participants will hear how investors and businesses are implementing innovative methods to manage investor demand for ES&G information. To learn more about & register for this year's ES&G Forum, please visit: http://bit.ly/esg-forum-2014
When we conducted our inaugural environmental, social and governance (ESG) survey of private equity (PE) professionals last year, it was startling to see that nearly half (49%) of our general partner (GP) respondents did not have an ESG program at their firm and had no plans to create one, despite heightened concern from limited partners (LPs) on ESG issues. What a difference a year makes—not to mention the fact that we had a higher proportion of European respondents this year, who are much more progressive when it comes to ESG issues. In our second edition of the ESG survey, a majority of GP respondents (60%) now work at a firm with an established ESG program and another 26% either have an ESG program in development or plan to create one in the near future. However, there are still some PE firms that see little value in ESG programs. As one GP respondent put it: “we think [ESG] is the most asinine initiative ever to come out in the business world.”
While some PE firms eschew ESG issues and think that strong fund performance is enough to attract LP commitments, the LPs themselves are telling a different story. Eighty-four percent of LP respondents say that ESG issues are at least somewhat important when deciding whether or not to commit to a PE fund, with 18% claiming they are essential. Furthermore, 24% said they would they would commit to a fund with slightly lower historical performance if the firm had a strong ESG program. Remember, many of the largest contributors to PE funds are public pension plans, endowments, foundations and sovereign wealth funds—institutions which not only are interested in returns but also have an image to maintain. “GPs have to be more aware of investors’ desire for knowledge of their investments beyond just the financial return,” commented one LP respondent, while adding that the responsibility ultimately falls on the investors: “GPs will only change if the LPs push them to.”
One of the big takeaways from this year’s survey is that more PE firms are taking the necessary steps to make ESG a fundamental part of their investment approach. For example, 28% of GP respondents indicated that their firm produces a corporate social responsibility (CSR) report, up from 18% in 2012. And while finding effective metrics to monitor ESG performance continues to be the largest hurdle for ESG efforts, PE firms continue to find new ways to measure their ESG initiatives and have increasingly utilized forums, case studies and industry events and guidelines to fill the knowledge gap.
We hope that this survey serves as a lens into the current state of ESG issues in the PE industry and provides a starting point for developing a set of best practices that can be adopted by firms of all sizes. If you are interested in participating in future editions of the survey, or have any comments or suggestions for how we can improve this report, please contact us at research@pitchbook.com.
Aligning ESG with Corporate Strategy to Gain a Competitive Advantage - SG Ana...SG Analytics
From the sudden surge in the popularity of green finance to the pervasive impact of ESG factors on consumers and their purchasing decisions
Visit: https://us.sganalytics.com/blog/aligning-esg-with-corporate-strategy-to-gain-a-competitive-advantage/
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http://pwc.to/2k0a12Q
***************************************************************
For the last two decades, PwC has asked business leaders everywhere about the trends reshaping business and society. As we mark the 20th year of our annual CEO survey, we’ve observed just how much the world has changed.
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Etude PwC sur la RSE dans le Private Equity (2013)
1. www.pwc.com/sustainability
Putting a price
on value
The PwC Private Equity (PE) responsible investment survey shows
there is more opportunity for value protection and creation through
Environmental, Social and Governance (ESG) issue management
for the private equity industry.
79%of PE houses believe investor
interest in ESG issues will
increase in the next two years
71%of PE houses include ESG
management in their due
diligence at acquisition
15%Less than 15% of PE houses
calculate the value they create
through ESG activity
3. PwC Putting a price on value 3
01
Foreword: finding
the value in ESG
management
02
Results: how PE
houses view ESG
management
03
ESG risk
management is
developing fast…
06
Realising value
from ESG
initiatives
04
…and more is
to come
07
Contacts
05
But the
opportunities are
not being grasped
08
Participants
This report summarises the findings of the PwC PE Responsible
Investment Survey 2013, and sets out our thinking on how
better ESG management can create value in private equity.
4. 4 PwC Putting a price on value
01
Foreword: finding the value in ESG
Better environmental, social and governance (ESG) management provides an opportunity
for the private equity sector to generate more value – more value for their portfolio
companies, for their investors and for society at large. But better ESG management isn’t
easy. It needs specialised skills, dedicated resources and new ways of thinking about
how companies are managed and where economies and growth are headed. And the
link between ESG issues and value creation is not always easy to measure. Even the most
sophisticated Private Equity (PE) houses see the challenge in understanding, quantifying
and communicating the value that good ESG management can deliver.
Across the industry,
increasing efforts are being
made to understand ESG
issues, reduce ESG risks and
leverage ESG opportunities.
And there is certainly a
widespread belief in the
value of ESG management.
Many private equity investors
(the Limited Partners (LPs))
are asking questions of PE
houses about how they are
approaching ESG issues.
PE houses themselves have
carried out due diligence on
environmental, health and
safety risks for many years.
Now, more and more are
monitoring their portfolio
companies’ ESG performance,
with some looking at risk in
the supply chain too. Others
are starting to look for ESG
opportunities in a systematic
way, and beginning to
quantify and prioritise them.
But many PE houses are
missing the opportunity to
put financial numbers on
their ESG efforts and to value
them.
This year, we carried out
the largest ever survey of
the private equity industry’s
attitude to ESG issues (see
the ‘About the survey’ box).
More than 100 PE houses
in 18 countries responded,
managing more than
$860 billion of assets
(see page 22 for the list), and
the findings reinforce what
we have learnt through
working with our private
equity clients.
What we found from
the research is that ESG
management is still mainly
geared towards risk, rather
than opportunity. ESG activity
levels are high at acquisition
with PE houses sensibly
keen to identify potential
problems, but reduce during
the hold period, with few
measuring the difference
they’ve made at exit.
5. We believe that not only is
there clear benefit in better ESG
management, but also that it
is possible for the value to be
quantified and communicated
to investors, acquirers and
wider stakeholders. In some
cases, we’ve seen LPs declining
to invest in PE houses without
minimum ESG standards.
Some elements, like more
efficient resource use, flow
measurably through to the
bottom line – although even
here, many PE firms are still not
capturing and communicating
the value generated. In other
areas, such as employee
retention, job creation, or better
social acceptance of private
equity, the value is less tangible,
but is no less real – and the tools
exist to put a figure on it.
I would like to thank the
PE firms that took the time
to respond to this survey.
They recognise the growing
importance of this issue.
Indeed, there is a virtuous
circle to be unlocked. If private
equity firms can demonstrate
that the resources they dedicate
to ESG management generate
value, then they are likely to
increase their efforts in this area.
Putting a price on that value will
produce genuine benefits for the
PE sector and beyond.
Global Sustainability Leader &
Partner (UK)
+44 20 7213 2502
malcolm.h.preston@uk.pwc.com
PwC Putting a price on value 5
The private equity industry is embracing responsible
investment (RI). It is spending more time and resources
managing the underlying environmental, social and
governance (ESG) issues.
But in our work with the sector, we have found that
many PE houses are struggling to quantify exactly
how RI and ESG management add value. And they are
struggling to communicate that value to their investors
and wider stakeholders.
To explore this issue in more depth, we conducted the
largest survey yet of attitudes to responsible investment
within the PE sector of existing practices in ESG
management, and of plans and intentions for the future.
We received responses from 103 PE houses to an on-line
survey, conducted in May 2013 across 18 countries.
Follow-up phone calls and meetings were held with
selected respondents.
This report summarises the findings of the survey, and
sets out our thinking on how better ESG management
can create value in private equity.
About the survey
Responsible investment is founded on the view that
the effective management of environmental, social and
governance (ESG) issues is not only the right thing to
do, but is also fundamental to creating long term value.
Responsible investors believe that companies that are
successful in avoiding ESG risks while capturing ESG
opportunities will outperform over the longer term.
Environmental issues include pollution of land, air
and water and related compliance; eco-efficiency;
waste management; natural resource scarcity;
and climate change. Environmental challenges
also present opportunities for value creation, for
example, generation of incremental revenue from new
technologies, products and markets.
Social issues encompass the health and safety, labour
conditions and human rights of employees and those
in supply chains; and treating customers and
communities fairly. Value creation opportunities might
include improving productivity, and increasing brand
loyalty or product integrity.
Governance in this context is generally held to
encompass the governance of environmental and
social issue management, anti-bribery and corruption
measures, business ethics and transparency. Initiatives
implemented here might avoid negative financial
surprises and reduce reputational risk.
Responsible investment defined
6. 60%
79%
21%
56%
42%
02
6 PwC Putting a price on value
Results: how PE houses view ESG
management
Chart 1: What’s driving ESG issue management?
Chart 3: Are investors interested in ESG issues? Chart 4: Disclosure to investors
Chart 2a: Current approach to ESG management
Chart 2b: What tools are used?
36%
Risk management
24%
Investor pressure
15%
Opportunity
8%
Corporate values
7%
Regulation
7%
Senior partner pressure
57%Formalised public
commitments on
ESG management
55%ESG policy in place
48%Tools to implement
any ESG policy
Other 30%
Reporting tool 45%
Portfolio/Target company questionnaire 56%
Risk map by sector and issue 27%
Briefing notes 30%
Electronic toolkit 10%
Check list 61%
Aide memoire 17%
Global
average South America North America Europe Asia Pacific
n Investors interested in ESG issues
n Expect interest to increase within two years
Source: PwC Global PE Responsible Investment Survey 2013
n Currently disclose RI activity
at the house or ESG activity in
the portfolio to investors
n Expect to disclose in the next
two years
n Plan to use the ESG disclosure
framework
Globalaverage42%
Europe51%
SouthAmerica14%
AsiaPacific15%
AsiaPacific15%
NorthAmerica17%
Globalaverage60%
Europe65%
SouthAmerica29%
AsiaPacific31%
NorthAmerica100%
Globalaverage56%
Europe61%
SouthAmerica43%
NorthAmerica100%
29% 17% 23% 8%71% 68% 83% 62%
7. PwC Putting a price on value 7
Chart 8: ESG management features throughout the deal life cycle
Chart 5a: Who’s driving ESG management?
Europe
68%
South America
57%
North America
33% Asia Pac
31%
60%
Chart 5b: Resourcing by region
n Up to 1 FTE n Over 1 FTE n No Resource
n Global average n Small cap n Medium cap
n Large cap
Chart 6: Levels of reporting
Portfolio companies formally reporting
ESG monitoring results to their house
88%
Portfolio companies regularly reporting
ESG monitoring results to their boards
62%
Chart 7: Valuing ESG activity
n Global average n Large cap n Medium cap n Small cap
Value
Environmental
activities
Value
Social
activities
Value
Governance
activities
Monitor
Environmental
activities
Monitor
Social
activities
Monitor
Governance
activities
14%
Asia Pacific
15%
15%
Europe
23%
40%
North America
17%
67%
South America
29%
57%
Global
average
22%
40%
9%
11%
80%
73%
86%
13%
15%
87%
76%
95%
63%
59%
66%
6%
19%
88%
88%
100%
31%
16%
0%
0%
3%
Acquisition
100–180
day plan
Exit
47%
78%
94%
71%
38%
53%
69%
50%
31%
38%
38%
36%
PE houses have a Partner responsible for ESG
issues, but this varies by region
50%of these Partners have support
4+ 8%
2 or 3 full time 14%
1 full time 24%
Part time 16%
8. 8 PwC Putting a price on value
03
Clear drivers
Our survey results highlight
five drivers for ESG
management (see Figure 1).
Value is core to ESG
management effort
Belief in generating value is
already at the heart of private
equity’s embrace of ESG
issue management, whether
it’s protecting it through
reducing and managing risk,
or generating incremental
value by spotting ESG
opportunities.
PE houses have long
scrutinised portfolio
companies pre-acquisition
for environmental, health
and safety risk. Here, the
value case is perhaps most
easily appreciated by senior
management: an exposure
overlooked at acquisition can
prove costly. According to
our survey, risk management
remains the most important
single reason for PE houses
to address ESG issues, cited
by 36% of respondents. This
figure rises to 67% in North
America, while it is 40% in
Germany and 43% in Spain.
A minority identifies the other
side of the value coin – with
15% citing ‘opportunity’ as
the primary driver for their
responsible investment
activity. PE houses we have
worked with have found
ESG risk management is
developing fast…
Responsible investment has been on the private equity agenda for a number of years. Some
in the industry may have suspected that concern about ESG issues would be a passing fad.
But our experience with the sector shows that the attention that investors and PE houses are
paying to ESG management is growing.
“Investors and private equity managers
increasingly believe ESG management adds
value – the challenge now lies in quantifying it”
Phil Case, PwC UK
Figure 1: Drivers for ESG management
Source: PwC Global PE Responsible Investment Survey 2013 All respondents
36%
Risk management
24%
Investor pressure
15%
Opportunity
8%
Corporate values
7%
Regulation
7%
Senior partner pressure
9. PwC Putting a price on value 9
opportunities to cut costs
within portfolio companies:
reducing energy emissions
and waste and improving
water use and health
and safety performance.
They’ve also encouraged
portfolio companies to
develop revenue-generating
initiatives, such as new
cleantech products, or
identify new markets that
address emerging macro
environmental and social
trends.
We think that both risk
management and opportunity
identification can create
value in portfolio companies
– but, from the survey, the
balance within the PE sector
as a whole is skewed heavily
towards risk management.
As more PE houses quantify
the incremental value of
these ESG initiatives, the
focus on risk management
may change to recognise
the upside potential of ESG
management.
Investors are a
driving force
PE houses understand the
needs of their stakeholders,
and recognise that their
clients, the LPs, are becoming
increasingly engaged on
responsible investment.
Investors have been
instrumental in driving the
ESG agenda within private
equity and one in four of our
survey sample states investor
pressure as the primary
driver.
But that figure does not
do justice to the extent of
investor concern. 85% of
PE houses said that at least
some of their investors have
shown interest in responsible
investment over the last two
years. In France, 43% said
a majority of their investors
were concerned about
the issue.
Regulatory pressures
build
A small number of PE houses
– 7% of respondents – already
cite regulation as a driver for
their responsible investment
activities. Generally speaking,
these regulations relate to
the social and environmental
impacts of portfolio
companies, rather than to
their investors.
However, the financial
sector in general, and
private equity in particular,
is also subject to increased
regulatory oversight. Much
of this regulation relates to
governance and transparency,
and is in part a consequence
of the 2008-09 financial
crisis. But the private equity
sector is also subject to some
direct environmental and
social regulation.
In the UK, for example,
the CRC Energy Efficiency
Scheme applies to private
equity houses and their
investee companies as
well as to companies, such
“ESG [management] is a barometer of
the health of the management of the
companies in our portfolio. The robust
financial performance of our companies is
vital, but how this growth is accomplished
is also very important because it ensures
future performance”
Oliver Millet, Chairman of the Executive Board,
Eurazeo PME
“ESG management extends beyond risk - PE
firms are recognising strategic, operational,
reputational and financial benefits”
Lauren Koopman, PwC US
10. 10 PwC Putting a price on value
as retailers, with a larger
environmental footprint.
Regulatory pressures have
been a particular driver
for some PE companies in
France, where Article 224 of
the Grenelle II Act requires
investors to disclose how they
integrate ESG criteria in their
investment processes. More
regulation is on the way.
In Brazil, the introduction
of two draft resolutions
submitted for public
consultation in 2012 by the
Brazilian Central Bank will
bring expectations to improve
sustainability disclosure and
accountability to the financial
sector. The first resolution
proposes that all financial
institutions be required to
create and implement socio-
environmental responsibility
policies well-matched to
the extent of the impact of
their business. This policy
will need to address issues
such as climate change. The
second resolution creates the
requirement for the financial
sector to elaborate and assure
annual Socio Environmental
Responsibility Reporting.
The pull from outside the
sector and the push from
within are combining, in
leading countries, to make
sound ESG management a
minimum standard. Only one
of 20 respondents in the
UK, for example, does not
have or is not developing a
responsible investment policy.
Corporate values play
a part too
But it’s not only about
external pressure. In our
survey, 15% of responding
PE houses said that
corporate values, or a lead
from a senior partner, is
the primary motivation
for their responsible
investment activities. In 60%
of responding PE houses
globally, responsibility for
ESG issues lies at the
partner level.
Clearly, senior leaders in
many PE firms understand
the business case for
ESG management. This
is sometimes expressed
intuitively: “It is simply
better business”, one
respondent notes. But there
is an increasing recognition
that good environmental
and social performance is
often associated with better
business performance – and
stakeholders are increasingly
making that link.
How PE houses are perceived
can be important in attracting
the best and brightest talent.
Concern about ESG issues
is high among the next
generation of employees
and it has a bearing on their
choice of potential employer.
The PE sector is
responding…
These drivers are leading PE
firms to take action on ESG
issues.
More than half of responding
PE houses globally have
made public commitments to
responsible investment, and
that figure rises to 80% in
the UK and the US, and 90%
in France. Over half (55%)
have developed formal RI
polices, with another one in
four having policies under
development (see
Figure 2). Again, more
advanced jurisdictions have
moved further: 100% of
respondents in the US either
have, or are developing, a
policy. In the UK, that figure
is 95%. Interestingly, not
everyone has the tools to
implement their responsible
investment policy yet
reflecting a lack of best
practice sharing and helpful
guidelines. Getting started
is usually the hardest part
– as we have found in the
corporate sector.
“Regulation is set to
reshape the environment
for ESG management”
Carlos Rossin, PwC Brazil
60%
In 60% of responding
PE houses globally,
responsibility for ESG
issues lies at the partner
level.
11. PwC Putting a price on value 11
They are also increasingly
putting these commitments
into practice. The survey
shows high levels of attention
paid to ESG issues – at least
during parts of the investment
cycle. At acquisition,
screening for ESG risk and
opportunities is widespread,
with 71% of houses doing
so ‘always’ or ‘frequently’.
In the UK, that figure rises to
90%. Less than 5% globally
never consider ESG factors
during diligence.
Post acquisition, at the 100-
or 180-day post-acquisition
planning stage, the figure
has fallen away somewhat,
from 71% to 51%, with just
over half of PE houses saying
they regularly include ESG
issues in their post-acquisition
plans. Again, the figure in the
UK is much higher, at 85%.
The monitoring of portfolio
companies’ performance
on ESG issues during the
hold period is surprisingly
widespread. Environmental
issues are tracked by 80% of
respondents, social issues by
73%, and governance by no
less than 86% of PE houses.
The UK is out in front in terms
of including ESG issues in
the programme for exit, with
50% carrying out vendor due
diligence for ESG issues, or
including ESG information in
the data room, for example.
...and is disclosing to
investors
Given the extent of investor
interest in the issue, it is high
on the agenda for reporting
by PE houses. Just under 60%
of PE houses already disclose
their responsible investment
activity to their investors.
That figure rises to 80% in
Sweden, 86% in France, and
100% in the US.
This disclosure takes a
number of forms. Some
produce an annual ESG
report. Some integrate
ESG information into their
quarterly reporting. For
others it remains an ad hoc
process, as and when material
ESG issues emerge, for
example a labour dispute or
changing regulation.
“The number of pure ESG due diligence initiatives is increasing
strongly - they concentrate on real strategic issues, are more and
more linked to financial issues, and are short-, mid- and long-term
performance oriented.”
Sylvain Lambert, PwC France
Figure 2: Managing ESG issues
Source: PwC Global PE Responsible Investment Survey 2013 All respondents
55%Responsible investment
policy in place
48%Tools to implement any
Responsible investment
policy
12. 12 PwC Putting a price on value
04
…and more is to come
Responsible investment is a work in progress for the PE sector. Our clients in the industry
anticipate greater interest from investors, and expect to make greater efforts internally on
ESG management. And even the leaders recognise that they need to do more.
Our survey shows that PE
houses believe investor
interest in responsible
investment will continue to
rise (see Figure 3). Almost
four out of five PE houses
expect the level of investor
interest to rise over the
next two years. Not a single
respondent expects it to
decline.
ESG reporting on
the rise
And, as we’ve seen, the
PE industry is responding.
The already high level of
disclosure is likely to get
higher. When asked if
they expected to disclose
responsible investment
activity in the next two
60% said yes (see Figure 4),
with only 8% saying no and
26% yet to decide.
This trend towards greater
disclosure is finding support
from industry initiatives. For
example, in March 2013, the
PE industry came together to
publish the ESG Disclosure
Framework. Created by GPs
and LPs in collaboration, it
is intended to improve the
dialogue between investors
and PE houses on ESG
issues (see ESG Disclosure
Framework box on
page 14). Our discussions
with clients lead us to believe
Figure 3: Investor interest
a) Current interest from investors
b) How PE houses believe investor interest will change over the next two years
Source: PwC Global PE Responsible Investment Survey 2013 All respondents
A minority
64.1%
None
7.8%
Increase
78.6%
Stay the same
15.5%
Decrease
0%
A majority
16.5%
All
4.9%
13. PwC Putting a price on value 13
the framework is likely to
gain widespread uptake,
particularly in countries
where the debate around ESG
issues is most advanced.
Integrating ESG
management
Not only do more houses
expect to disclose, but they
expect to do so in a more
systematic and integrated
way. Attention to ESG
issues is currently highest
at acquisition, reflecting
the PE sector’s traditional
focus on risk. But results
show that some houses are
also embedding their ESG
processes throughout the
investment cycle.
Staying ahead
It is striking how quickly ESG
management can become the
industry norm. In France,
for example, a handful of
firms led on the issue, and
they were quickly followed
by the rest of the market.
They were supported by
leading LPs demanding ESG
information as a condition
of investment, and by the
active engagement of AFIC,
the PE industry association.
Responsible investment
moved from a niche pursuit to
business as usual within three
years. When PE houses are
motivated to act on an issue,
they act quickly.
Figure 4: Disclosure to investors
Source: PwC Global PE Responsible Investment Survey 2013 All respondents
Plan to disclose
by 2015
60%
Disclose in 2013
56%
Plan to disclose in
line with the ESG
Disclosure Framework
42%
14. 14 PwC Putting a price on value
ESG Disclosure Framework
In March 2013, a group of 40 LPs, 20 industry associations and 10 leading GPs published
the ESG Disclosure Framework. It has two objectives: to help GPs better understand why LPs
want ESG information; and to help rationalise the increasingly numerous ESG information
requests from LPs.
It suggests a number of disclosures that GPs should consider during fund raising, and
during the life of a fund. However, it is not designed to be prescriptive. It instead aims to
provide guidance on the rationale behind ESG-related questions and facilitate informed
dialogue between GPs and their LPs.
Its authors hope that the wide involvement of both sides of the industry means it will gain
equally wide acceptance. The framework was published just a few months before the survey
was carried out. Nonetheless, our survey shows that, in the UK and France, some 70% of
respondents expect to disclose in accordance with the framework. Elsewhere – perhaps
where industry associations have been less active in promoting it – awareness is lower.
Plans to use the ESG Disclosure Framework
Europe
51% Asia
15%
North America
17%
South America
15%
Source: PwC Global PE Responsible Investment Survey 2013
15. PwC Putting a price on value 15
Resourcing ESG management
The survey has generated a wealth of information
about the internal resources that PE houses dedicate
to responsible investment. 38% of respondents report
no dedicated manpower, while 24% say they have one
full-time equivalent, and 13% say they have two or three.
29% of respondents say all investment team members are
formally trained in responsible investment. But at 45% of
responding houses, none are.
We believe it is important that staff have adequate
training for the role: ESG management does require
specialised, often technical, skills. This is not a subject
for enthusiastic amateurs.
Equally, the survey shows a variety of departments
supporting partners on responsible investment. Two-
thirds are supported by Investor Relations departments,
while the Group General Counsel is involved in almost
half of cases. Marketing and communications staff provide
support for 31% of respondents.
This variety of responses illustrates different approaches
to responsible investment, as well as reflecting different
house sizes.
There is a debate about how ESG issues should be
managed within organisations of all kinds – whether by a
centralised ESG function, or by integrating ESG skills more
broadly. There is no right or wrong approach – it depends
on the culture of the PE house involved – but at the end
of the day a dedicated resource (partial or full time) will
most likely be needed. This should be considered as an
investment (not a cost) because ESG matters are directly
linked to performance.
29%Only 29% of respondents say all investment
team members are formally trained in
responsible investment.
Dedicated resource for ESG management
Formal training for resource
Some are formally trained 26%
No training 45%
All formally trained 29%
n Up to and including one
n More than one n No resource
38% 40%
22%
Source: PwC Global PE Responsible Investment Survey 2013
16. 16 PwC Putting a price on value
05
But the opportunities are not
being grasped
ESG management has evolved rapidly in the PE sector – and is continuing to do so. But
while PE houses appear to be adept at monitoring ESG activities, they are struggling
to measure the value created by ESG initiatives.
It’s clear that investors and
many PE houses believe
that there is value in better
managing ESG issues. If they
didn’t believe in the benefits,
they wouldn’t expend such
time and effort doing so.
And there are some
cases – such as reduced
energy use, investment in
health and safety measures
(which reduce accidents
and increase productivity)
or in talent management
programmes that minimise
employee turnover –
where better management
demonstrably feeds through
to enhanced returns and
performance. But it is also
clear that more needs to be
done to identify, quantify and
communicate that value.
We mentioned earlier that
15% of survey respondents
cite value creation as the
primary driver behind their
responsible investment
activities. But only 14%
of respondents say they
estimate the value created
by environmental initiatives
within portfolio companies.
The scores were even lower
for social and governance
issues, at 9% and 11% (see
Figure 5).
The US – an eco-efficiency outlier
Some 60% of US respondents say they estimate the value created by their portfolio
companies’ environmental initiatives – far higher than the 14% global average.
This reflects the fact that leading US-headquartered PE houses have embraced an
eco-efficiency driven approach to ESG management. This focuses on cost savings through
reducing energy, fuel and water use, cutting emissions and other waste streams, and
making processes leaner. Such an approach lends itself to measurement and valuation.
Figure 5: Gap between monitoring and valuation
n Monitor ESG initiatives n Measuring value from ESG initiatives
Source: PwC Global PE Responsible Investment Survey 2013 All respondents
Environment
Social
Governance
60%
Some 60% of US
respondents say they
estimate the value
created by their portfolio
companies’ environmental
initiatives – far higher than
the 14% global average.
80%
14%
9%
11%
73%
86%
17. PwC Putting a price on value 17
Why is it proving so
hard to make the
value case?
We believe that the sector’s
traditional skew towards
Environmental, Health
Safety (EHS) risk means
that opportunities are being
neglected. Around the world,
PE houses have traditionally
looked at ESG issues through
a risk lens (the US being a
notable exception). There
is no doubt that better
ESG management reduces
risk – without it in the due
diligence stage at acquisition,
missed risks can impose a
heavy price on a new deal.
However, the value of that
risk reduction is difficult
to quantify: PE houses are
protecting themselves against
potential situations that didn’t
materialise because they were
anticipated.
A more systematic approach
to ESG management is likely
to unearth opportunities
that could generate top-
line growth for portfolio
companies. These might
include new ‘responsible
products’ eg. eco-efficient, fair
trade or organic, cleantech
products, or services aimed at
underserved socio-economic
groups, such as micro-
credit or off-grid electricity
provision.
Asking the right
questions
PE firms tend to be hands-on
owners of the companies in
their portfolios, and good
information is fundamental
to good management. Our
survey shows high levels
of monitoring of portfolio
companies’ ESG performance.
But it also indicates low levels
of value estimation from this
ESG performance. This gap
between monitoring and
valuation implies that the
right questions aren’t being
asked. There are a number of
potential explanations. One
is that the monitoring taking
place is insufficiently rigorous
to allow financial conclusions
to be drawn. Another –
which is often given by PE
respondents – is that the
methodologies don’t exist to
allow value to be estimated.
Resourcing to tease
out value
There is a growing range of
approaches that can put a
value on ESG performance
(see page 18 ‘Putting a value
on ESG activity’). This is
an emerging field. But that
doesn’t mean that the tools
don’t exist to put a robust
figure on the value created by
improved ESG performance.
Indeed, leading US houses
have blazed a trail with
environmental eco-efficiency
initiatives, which focus on
reducing emissions, waste
and energy and water use
(see ‘The US - an eco-value
outlier’ on page 16). But
it’s not only environmental
metrics that allow for
valuation. Techniques exist
to estimate credibly the value
of less tangible ESG issues,
such as employee satisfaction,
engagement and attrition,
job creation, or supply-chain
labour relations.
Risk that ESG value is
being left on the table
At the end of the day, a
company is only worth
what someone will pay for
it. And it’s at exit that PE
houses are rewarded for their
management of their portfolio
companies. At present, only
one in three respondents
regularly includes ESG issues
in the programme for exit.
This risks leaving ESG value
on the table by failing to
tell a compelling ESG story
to potential purchasers.
Neglecting ESG issues at
exit means that the effort to
manage ESG issues during
ownership is potentially
going unrewarded and the
resulting benefits aren’t being
quantified.
“A recurrent theme is that
PE houses are not sure
what to measure, or what
benchmarks to use”
Valerie Arnold, PwC Luxembourg
Figure 6: Including ESG issues in the life cycle
Source: PwC Global PE Responsible Investment Survey 2013 All respondents
Acquisition
71%
100–180 day plan
50%
Exit
36%
18. 18 PwC Putting a price on value
A failure to consider ESG risks
systematically allows buyers
to impose discounts on the
purchase price. If the vendor
can’t provide reassurance
– and evidence – that it has
addressed potential ESG
problems, it will be expected
to factor the uncertainty into
the price. A survey of trade
buyers we carried out for the
UN Principles for Responsible
Investment found that 80% of
acquirers reduced the value
of an acquisition target – or
pulled out of a deal – over
ESG exposures.1
And these exposures may not
necessarily be found within
the portfolio companies
themselves. We believe there
is scope for PE houses to take
a wider view of ESG risk, and
consider their investments’
entire value chain. We’ve
found that some PE houses
still take the view that ESG
risk is a low priority for
their business. In Australia,
for example, a number of
firms have told us that,
because they tend to invest in
companies in well-regulated
OECD countries, they do not
consider themselves unduly
exposed to ESG risk issues.
But supply chain ESG risks
in less well-regulated regions
can dwarf direct exposures.
Furthermore, good host-
country regulation does
not necessarily mitigate
environmental, social or
governance risks, as PE
investors in care homes and
arms manufacturers have
found.
Putting a value on ESG activity
Our survey shows that many PE houses feel that the
methodologies don’t exist to allow them to estimate
the value generated by their ESG methodologies. It is
true that there is no generally accepted methodology
for quantifying the financial value generated by
sustainability initiatives. But there is a growing
number of tools available that can put numbers on ESG
performance.
Sustainability from the bottom up
Of particular value to private equity investors are
bottom-up or accounting-based methodologies. They
aim to identify the specific financial contribution of an
ESG initiative or programme. While this may sound
simple, the challenges lie in understanding the linkages
between the activity and the bottom-line, and in finding
the data that makes quantification possible. This
might be straightforward in, say, an energy efficiency
investment. It becomes more complex when assessing
the full direct and indirect effects of an entire ESG
programme.
However, while it is complex, it is not impossible. PwC
has developed a sustainability valuation methodology
that identifies the key drivers of value within an ESG
initiative or programme. It then draws upon a toolkit
of valuation techniques to place a value on both
tangible factors, such as reduced energy costs, and
more intangible ones like improved brand and better
stakeholder relations.
1 UN Principles for Responsible Investment: The integration of environmental,
social and governance issues in mergers and acquisition transactions,
December 2012 http://www.pwc.com/gx/en/sustainability/publications/esg-
impacts-private-equity.jhtml
19. PwC Putting a price on value 19
Wider returns
from responsible
investment
In addition to potentially
better valuations at exit, there
are benefits from responsible
investment related to how a
PE house – and the sector at
large – is perceived.
Communicating an ESG
message to investors can,
in some markets (eg. the
UK and France), offer
differentiation. Providing
evidence of sophisticated
ESG management, and the
value that it brings, offers
differentiation in any market.
For major corporates, good
ESG management is seen as a
proxy for good management
more broadly. The same will
be true in private equity.
Conversely, ignoring ESG
management can expose PE
houses to fund-raising risk.
A growing number of LPs
are including questions on
ESG factors in the request for
proposal (RFP) process, and
there is anecdotal evidence
from Japan and Scandinavia
of PE houses that have been
rejected for investment by
an LP because they were
unable to provide the ESG
information required.
Clearing the hurdles
Our survey shows that the uptake of responsible investment varies widely between
countries, with France and the UK leading. What are the barriers that hold back PE
engagement in ESG management?
A lack of investor interest
Demand from LPs is a critical driver. It is no coincidence that countries like Japan, where
more than one third of respondents reported no interest from investors in the prior two
years, are lagging on ESG management.
Senior partner indifference
ESG management is not yet business as usual for everyone. It requires new ways of
thinking about risk and opportunity, plus additional resources, and management
attention. All these require leadership. Countries that report low levels of partner
engagement for responsible investment tend to score less well in terms of maturity.
Reliance on regulation
Regulation can be a driver for PE engagement on ESG management, but it can also hold
it back. German PE houses set great store in complying with regulation – but if the focus
is too much on compliance, are potential value-creating opportunities missed? Similarly
in Australia, where regulation is also strong, we see fewer firms driving ESG initiatives. A
generally robust regulatory environment does not remove ESG risk altogether: consider
BP’s Gulf of Mexico disaster, CalPERs’s exit from gun manufacturers, or care homes
scandals in the UK and Finland.
Lack of trade association leadership
In leading countries, PE associations have played a key role in promoting the responsible
investment agenda to their members (eg. the BVCA in the UK and AFIC in France).
The flip side of this is that, where associations have not been so active, PE uptake has
been low.
Keeping the ‘private’ in private equity
Not all PE houses have embraced transparency. And some remain unwilling to publicise
the work they are doing around responsible investment. In the US, for example, we
believe there is considerable activity happening, more than that reflected in the survey.
Some PE firms, across the regions, are understandably reluctant to go public before they
feel they have the full story.
Value demonstration
The private equity sector is nothing if not focused on returns – and skepticism about the
degree to which ESG management adds value, or a perceived inability to measure that
value, remains the most important hurdle. But our work in the sector shows that value
can be ascribed to ESG management and performance. As this evidence becomes clearer
and more widely communicated, the hurdles discussed here will come down.
“We’re seeing more and more questions
asked by LPs, so GPs are asking us how they
should communicate around ESG issues”
John Tomac, PwC Australia
20. 20 PwC Putting a price on value
06
Realising value from ESG initiatives
So how should the industry respond to the responsible investment challenge?
We recommend that PE houses looking to generate and realise value from better ESG
management should:
Take a more
structured approach
to identifying the ESG
opportunity
Rather than primarily
focusing on risk, firms
should also look more
carefully for opportunities for
performance improvement in
ESG management – whether
in terms of eco-efficiency,
or in new product lines
and revenue streams. This
is particularly relevant at
acquisition. PE firms work
hard at developing detailed
100-day action plans to
ensure that they maximise
the impact of their ownership.
An ESG plan of action should
be included in the acquisition
plan for the same reason.
Aim for better
analysis of ESG value
during the hold
period
Our survey suggests that a
great deal of effort already
goes into monitoring ESG
performance. But the fact that
few PE houses estimate the
value those activities generate
suggests that this information
is, at best, unexploited. At
worst, the monitoring may
be insufficiently rigorous to
allow for proper analysis.
Explore
methodologies that
can put a financial
value on both tangible
and intangible ESG
benefits
This is, without doubt,
an emerging area. But
methodologies are available
that allow either a top-down
or bottom-up assessment
of the value created by
ESG activities (see page
18 ‘Putting a value on
ESG activity’).
Present a better ESG
case at exit
From our experience, this
is ultimately where the
ESG value that portfolio
companies generate is
monetised. Improved
efficiencies will already
have fed through to bottom-
line performance, but the
identification of potential
ESG opportunities will help
to show how the company
is positioned for growth.
Buyers will be on the look
out for discounts due to
unanticipated ESG risk.
Vendor ESG due diligence can
“PE houses are very focused on managing
ESG risk and meeting regulations, but are not
exploiting opportunities”
Hendrik Fink, PwC Germany
21. PwC Putting a price on value 21
help to close down potential
exposures.
Companies with lower ESG
risk, and with a positive ESG
story to tell, will be attractive
to more buyers and will
command higher valuations.
Effective ESG management
takes resources – in terms of
tools, and capacity. There is
a debate about the degree
to which PE houses need
ESG expertise in-house, and
whether those skills should
be centralised or integrated
(see page 15 ‘Resourcing ESG
management). Improved ESG
management requires adding
to the skillset of the typical
private equity investor. But
those additional skills should
help PE houses add value to
their portfolio companies,
their investors, and to society
at large.
“The point of exit is too late to start looking
for value from ESG issues – the process needs
to start much earlier”
Hannah Routh, PwC Hong Kong
“We view value as something more than just measurable
financial value. We value de-risking our businesses, enhancing
their reputation and brand, and helping to build better managed
businesses that are easier to sell and more attractive to buyers or
the markets.”
Doughty Hanson
How are you preparing to respond efficiently to questions from LPs, or prospective
LPs, on how you are managing ESG issues in your funds?
Do you have a clear view on your portfolio companies’ material ESG risks and
opportunities, and how they are responding to them?
Can you put a value on your firm-level ESG activities, and the ESG performance
of your portfolio?
To what extent are you managing ESG issues across the value chains of your
portfolio companies?
Are you in a position to tell a compelling ESG story at exit?
Moving ahead – five questions PE houses should ask themselves
1
2
3
4
5
22. 22 PwC Putting a price on value
Contacts
PwC is helping a range of PE houses to assess the implications and address the practical
challenges of ESG management. If you would like to discuss any of the issues raised in this
report, please speak to your regular PwC contact or one of the following:
Global
Malcolm Preston
Global Sustainability leader
+44 20 7213 2502
malcolm.h.preston@
uk.pwc.com
Argentina
Marcelo Iezzi
+54 11 4850 6827
marcelo.iezzi:ar.pwc.com
Australia
John Tomac
+61 2 8266 1330
john.tomac@au.pwc.com
Alexander Maron
+61 2 8266 1490
alexander.maron@
au.pwc.com
Brazil
Alexandre Pierantoni
+55 11 3674 3919
alexandre.pierantoni@
br.pwc.com
Ana Touso
+55 11 3674 2041
ana.touso@br.pwc.com
Carlos Rossin
+55 11 3674 2640
carlos.rossin@br.pwc.com
Thailla Calabrez
+55 11 3674 3440
thailla.calabrez@br.pwc.com
Canada
Janice Noronha
+1 514 205 5693
janice.noronha@ca.pwc.com
Chile
Mathieu Bruno Vallart
+56 2 29400401
mathieu.bruno.vallart@
cl.pwc.com
Finland
Sirpa Juutinen
+358 40 578 2615
sirpa.juutinen@fi.pwc.com
Johanna Raynal
+358 40 922 800
johanna.raynal@fi.pwc.com
France
Sylvain Lambert
+33 1 5657 8083
sylvain.lambert@fr.pwc.com
Emilie Bobin
+ 33 1 5657 8660
emilie.bobin@fr.pwc.com
Germany
Holger Himmel
+49 69 9585 5871
holger.himmel@de.pwc.com
Hendrik Fink
+49 89 5790 5535
hendrik.fink@de.pwc.com
Hong Kong China
Hannah Routh
+ 852 2289 2968
hannah.routh@hk.pwc.com
Japan
Scott S Williams
+81 80 3158 6815
scott.s.williams@jp.pwc.com
Philip Massey
+81 80 4291 8195
philip.massey@jp.pwc.com
Luxembourg
Valerie Arnold
+352 494848 2285
valerie.arnold@lu.pwc.com
Saleh Khan
+352 494848 4167
saleh.khan@lu.pwc.com
Norway
Wenche Grønbrekk
+47 98 26 42 68
wenche.gronbrekk@
no.pwc.com
Poland
Anna Szlachta
+48 22 523 4507
a.szlachta@pl.pwc.com
Irena Pichola
+48 22 523 4587
irena.pichola@pl.pwc.com
Spain
Maria Luz Castilla
Porquet
+34 932 537 005
mariluz.castilla@es.pwc.com
Antonio Capella Elizalde
+34 932 532 555
antonio.capella.elizalde@
es.pwc.com
Pablo Bascones Ilundain
+34 915 685 071
pablo.bascones.ilundain@
es.pwc.com
Sweden
Fredrik Franke
+46 709 29 12 97
fredrik.franke@se.pwc.com
Turkey
Engin Alioglu
+90 212 376 53 06
engin.alioglu@tr.pwc.com
UK
Philip Case
+44 20 721 24166
philip.v.case@uk.pwc.com
Patrick Shaw-Brown
+44 20 721 21353
patrick.j.shaw-brown@
uk.pwc.com
US
Lauren Kelley Koopman
+1 646 471 5328
lauren.k.koopman@
us.pwc.com
Kirk A Hourdajian
+1 203 936 7773
kirk.hourdajian@us.pwc.com
07
23. PwC Putting a price on value 23
Participants
We would like to thank...
21 Partners
3i Plc
ABENEX
Actis
Activa Capital
Apax Partners
Argos Soditic France
Arle Capital Partners
Astorg Partners
Aureos
AURUS S.A.
Axa Private Equity
Azulis Capital
Bain Capital
Better Capital
Blackstone
CapMan Plc
Carlyle Group
CDC Entreprises
Céréa Gestion
CITIC (Citic) Capital Partners
Japan Ltd.
Clayton Dubilier Rice
Conor Venture Partners Oy
CVC
DLJ
Doughty Hanson
ECI Partners
ECM Equity Capital
Management GmbH
Edmond de Rothschild
Capital Partners
EQT
Eurazeo
Eurazeo PME
Exponent
FSN Capital
Grameen Credit-Agricole
Foundation
Halder Beteiligungsberatung
GmbH
HD Partners
Headland Capital Partners
HgCapital
Innova Capital
Integral Corporation
J-STAR Co Ltd
Krokus
LBO France
Litorina
Montagu
Montefiore
NEO Investimentos
Next Capital Partners Co Ltd
NiXEN Partners
Nordia Management Oy
Omnes
OTPP
PAI Partners
PEP
Permira
Permira Asesores, S.L.
Pragma Capital
Prolimity Capital Partners
Qualium Investissements
Ratos
Riverside Europe Partners
Royalton Partners
Sun Capital Partners Inc.
Terra Firma
TMG Capital
Triton Partners
Value4Capital
Vision Capital
VNT Management Oy
Weinberg
A further 31 PE houses also
participated but chose not
to be named.
08