ESG
ESG reporting pressure in private equity Climate change crisis poses a major quandary for businesses , as some face growing pressure and negative public exposure to address their impact on the environment , particularly as ‘ greenwashing ’ becomes more rife . It can be difficult to accomplish , however , especially for larger companies with multiple locations , distributors , and systems within their supply chains — and it is this issue that RoadRunner is attempting to solve .
RoadRunner founder and CEO Graham Rihn revealed how his firm can assist companies in achieving their ESG initiatives , highlighting that enterprises usually lack the time and resources needed to appropriately manage day-to-day waste and recycling operations for their portfolio .
Offering customised recycling and waste services , RoadRunner is a company that works to improve waste stream management for businesses in a variety of industries .
While JPMorgan , Goldman Sachs , and BlackRock are launching and touting their own initiatives — and a new generation of High Net Worth Individuals is demanding better reporting on ESG criteria — those pressures are also playing out in private equity , albeit in a less visible manner .
" They do face certain pressures from investors ," says a high-ranking Wall Street banker in New York , who requested to remain anonymous . " Just less immediate scrutiny in the public eye ."
Limited partners , who have their own stringent criteria , drive some of the demand for ESG reporting . Nevertheless , many private equity firms are still failing to meet their investors ' ‘ best practice ’ expectations . In 2020 , for example , only 29 % of private equity firms made their full ESG policy public and only 25 % had an expert or team dedicated to accounting for ESG factors in investment decisions .
While comprehensive assessment of the private equity industry can be challenging due to its lower visibility
54 May 2022