ESG
“ OUR RESEARCH SHOWS THAT COMPANIES WHO FORGED STRONG BONDS WITH THEIR
EMPLOYEES HAVE SEEN LOWER LEVELS OF TURNOVER AND HIGHER RETURNS
THROUGH THE PANDEMIC ”
LARRY FINK CHAIRMAN AND CEO ,
BLACKROCK
when compared to public companies , research has shown that only a small minority of private equity firms obtain ESG reports from their portfolio companies , while many private equity firms won ’ t divulge whether such issues impact profitability .
How to reap the rewards of ESG initiatives in private equity investments As more private equity firms start paying closer attention to ESG objectives and strategies , the significance of implementing both to ensure a competitive edge when pursuing investments becomes increasingly apparent .
There are numerous actions private equity firms can take to boost their ESG portfolio : establish concrete policy commitments ; report on each ESG pillar ; define a simple yet effective scoring and screening strategy , and incorporate ESG-related questions into standard due diligence questionnaires . With those measures in place , providing employees training on legislative changes , current ESG trends , and organisational policies on a regular basis becomes straightforward . The process can then be cemented for the future .
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