将ESG数据转化为私募股权的竞争优势

CONTENTSIntroduction: Turning ESG data into a competitive advantageTop challenges facing private equityEstablishing a correlation between ESG and financial performanceManaging ESG across a diverse portfolioBringing more efficiency to reportingMaking the most of ESG data to enable better decision-makingConclusion: The time to act is now 4678101215 © Oliver WymanABOUT OUR RESEARCHThis report reflects results of a survey of 20 top European private equity firmsabout how they handle environmental, social, and governance policies andthe challenges ESG poses. The participating firms collectively represent about30% of PE assets under management in Europe. The survey was conductedbetween April and July 2023 by Oliver WymanandNovata.In addition to a questionnaire, the survey included in-depth interviews withindustry executives. The participating firms represent a wide range of assets undermanagement — from just under $1 billion to more than $160 billion — as well asdiverse sectors, geographies, andstrategies.As part of the survey, we discussed the firms’ current ESG strategies and processes,looming challenges, and views on the future state of ESG in private equity. Thisreport brings together these findings as well as insights generated by our surveyand conversations. All data contained in the report have been anonymized and madenon-attributable to anyfirm. © Oliver WymanIntroductionTURNING ESG DATA INTO ACOMPETITIVE ADVANTAGEEnvironmental, social, and governance (ESG) considerations are here tostay.Over the past 10 years, pushed by regulation and risk management concerns, ESG hasevolved from a nice-to-have fringe corporate activity into a strategic necessity all privatemarket participants must monitor and address. Today, European regulatory disclosure rules,including the Sustainable Finance Disclosure Regulation (SFDR), Corporate SustainabilityReporting Directive (CSRD), and European Union Taxonomy, all require eligible financialmarket participants to report ESG datapublicly.Thus, having a basic level of ESG competency is no longer a differentiator for privateequity (PE) firms but rather the norm. This is true across Europe with similar regulationsin the United Kingdom — the Sustainability Disclosure Requirements (SDR) and UK GreenTaxonomy — expected to take effect bymid-2024.In carrying out our analysis, we delineated four archetypes — basic, standard, enhanced,and best practice — that represent various states of ESG maturity across European PE funds,see Exhibit1. These archetypes can be used to highlight the differences between engagingwith ESG at a basic compliance level versus elevating ESG policies to a level that unlocksimproved risk management and value creation — what we consider best practice. Underboth enhanced and best practice, PE firms benefit from competitiveadvantage. Most European PE firms today across the “standard” and the “enhanced” archetypes, havingsuccessfully:Established a public firm-level ESGstrategyAppointed heads of ESG or an ESG governance structure within thefirmConsidered some ESG risks (and potentially ESG opportunities) at points in the investment lifecycle,such as due diligence orexitRecognized and tracked basic ESG key performance indicators (KPIs), such as carbonemissions1ESG Data Convergence Initiative2Sustainability Accounting Standards Board3Global Reporting Initiative © Oliver Wyman•••• © Oliver WymanTo elevate ESG beyond a mandatory administrative cost and into a competitive advantage,firms now need to identify the value in ESG data above and beyond compliance andincorporate it into their decision-making. Firms with a best-practice approach to ESG embedpolicies in all commercial functions and day-to-day business. This will enable firms to beginconnecting ESG directly with financial performance or value creation considerations and actfaster uponopportunities.Firms that are able to wield ESG as a competitive edge in coming years will enjoy strongerreputations with limited partners (LPs), the public, regulators, the corporate community, andthe media. Among its many commercial upsides, embracing ESG in this way can be expectedover time to reduce operational inefficiencies, generate revenue from ESG-friendly productsand enhanced customer loyalty, and better prepare firms for regulatory changes. To achievethis, the industry must deal with the challenges that accompanyESG.TOP CHALLENGES FACINGPRIVATE EQUITYNone of this is to say that turning ESG into a competitive advantage is straightforwardor easy. While European PE firms are generally eager to develop ESG strategies to createcompetitive advantage, they face obstacles in doing so. Here are the four hurdles mostfrequently identified by surveyparticipants:•The inability to quantify the financial impact of ESG, even though 100% of firms wesurveyed indicated they see ways in which ESG contributes to financialperformance•The resource-intensive nature of managing ESG metrics across diverse portfolios,which is a serious problem confr