在私募股权中释放可持续价值

A new tool to move beyond AUTHORS Florent NanseJulien MarcheseAlan Martinovich Private equity (PE) is leaving billions of dollarsin sustainability value on the table. While somepractitioners focus on the value proposition ofsustainability, the current status leaves much tobe desired. Gaps in current approaches includecumbersome frameworks focused on risk compliance I NP A R T N E R S H I P W I T H : Between 2010 and 2022, assets undermanagement of PE more than quadrupled. Asthe PE industry continues to expand, there is agrowing opportunity to generate financial andsocietal value through sustainability initiatives.Increasing the availability of finance is also a key About the research NYU Stern CSB, in collaboration with ADL,conducted a research program aimed atfacilitating the PE industry’s transitiontoward sustainable investing practices.The scope included the identificationof the issues and barriers as well as thedevelopment of a new framework tool However, many PE firms are currently poorlyidentifying and capturing sustainability value.Based on new research by the New York UniversityStern Center for Sustainable Business (NYUStern CSB) in collaboration with Arthur D. Little(ADL), we know that most GPs tend to focus on Deal-sourcing/pre-due diligence phase. Current practice focuses on ESG datarequests, checking against general exclusions,and often applying a gating methodologybased on specific criteria (e.g., an impact This Viewpoint outlines a newtool(open sourceand available free of charge) developed jointlyby NYU Stern CSB and ADL to help GPs better -Due diligence phase.This typically involvesreviewing material issues, including ESGKPIs if available and an ESG scorecard. ESGsensitivities may be applied to valuationanalyses to reflect possible impacts. The OPP ORTUNITIES The research identified several clearopportunities for improvement in how GPsapproach sustainability during the investment -Early investment and holding phase.Currentcommon practice includes conducting a basicESG materiality assessment, tracking someESG KPIs, putting in place ESG accountabilitystructures, and creating annual sustainabilityreports. However, there is often a lack This enables better monetization of sustainabilitybenefits and the development of a strongersustainability narrative over time, grounded inreal data. Striking a balance between short-termefficiency gains and sustained revenue growth is NE W TOOL TO HELP UNLOCKSUSTAINABILIT Y VALUE In our research, many GPs confirmed thatsustainability practices can derive more value,provided they have the right tools. NYU Stern CSB, -Exit.At the exit stage, the lack of effectiveESG metrics and data means that value growthand ROSI achieved are hard to demonstrate. -Phase 1 — due diligence.The tool helpsconduct a high-level assessment of ESG- -Phase 2 — early holding period.Tailoredfor the first 100 days of managing a newlyacquired portfolio company, the tool enables By way of output, the tool provides a summary heatmap that clearly shows areas with the highestrisks, as well as those with the potential for value How the tool works: Phase 1 due diligence Figure 2 summarizes the modus operandi ofthetool for the due diligence phase. The purposeof the tool for this phase is to help the user focus How the tool works:Phase 2 early holding period -The most relevantmaterial issuesfor thesector, as defined by the Sustainability Figure 4 summarizes the modus operandi ofthe tool for the early holding period phase. Thepurpose of the tool for the early holding period(e.g., the first 100 days) is to help the GP identifyand further explore top-priority issues based on -Good practicestrategies, practices,andvalue drivers(defined by NYU Stern CSB) With this as guidance, the user briefly researcheseach material issue, specifically looking atstated commitments and progress toward thesecommitments. Finally, the user assesses thetarget’s performance on each material issue across Source: Arthur D. LittleSource: Arthur D. LittleFigure 4. How phase 2 early holding period tool works This phase of the assessment begins with the userconducting a more in-depth issue prioritization(the tool provides the user with further guidanceon best-practice and scoring criteria). The tool The scatterplot is useful for ensuring that upsideopportunities are not neglected in prioritization.For example, in the case shown above for a foodand beverage company, “improving water security’ Figure 5. Scatterplot showing upside vs. downside rankings (illustrative)Figure 5. Scatterplot showing upside vs. downside rankings(illustrative) The tool also provides a variety of scatterplotsto get a better sense of how the material issues T H E T O O L E N C O U R A G E ST H E C O L L E C T I O N O F The next step for the GP user is to develop KPIsthat track ROSI. The tool provides an extensivedatabase of KPIs that the user can use off the shelfor as a guide to develop more targeted KPIs fortheir specific b