Private equity Responsible Investment guide launched
October 24, 2011
The private equity and venture capital industry is rooted in a need to protect and build value. Phil Case, a specialist in sustainability worked on the UK industry's new guide to responsible investment.
Environmental, social and governance (ESG) issues are moving to centre stage for many Private Equity houses, making the launch last week of the British Private Equity & Venture Capital Association's (BVCA) updated Responsible Investment Guide very timely.
The guide, co-authored by PwC’s Sustainability & Climate Change team, builds on the growing consensus that ESG issues must be proactively managed by firms to ensure their investment value is protected and enhanced. The updated guide is rooted in value protection and creation, and provides really practical tips on how to integrate the ESG risks and opportunities throughout the deal cycle.
Even since its first edition, it's clear that the agenda has moved on, driven largely by investor concerns. The emphasis is on practical steps and guidance and now includes the evaluation of ESG issues at the pre-investment stage. The process, including top-level screening, business profiling and due diligence are all set within the framework of the firm’s responsible investment values and principles. The detailed guidance can help firms understand which issues they need to consider and ensures that material ESG risk and opportunities are identified.
Risks and opportunities on environmental issues have very practical implications about value, resources and how business plans for growth and need to be considered throughout the deal cycle. With the guide we're seeing the multi-million pound private equity industry are demonstrating that ESG issues are becoming a first thought, no longer an afterthought.
View the guide http://admin.bvca.co.uk/library/documents/FINAL-_Guide_to_RI_v2.pdf, or contact Phil Case:+44 (0) 20 7212 4166.