When delivering on green commitments, keeping it simple is advisable, focusing on a few key metrics which are relevant to each business and linking ESG to business outcomes. Meanwhile, it’s important to be proactive, rather than waiting for regulations to enforce ESG focus. It’s also best practice to report transparently, even when targets are not met, as this will avoid accusations of greenwashing.

We recently participated in a feature article for ICAEW’s Corporate Financier magazine alongside other sustainability experts to discuss whether private equity firms are delivering on their green commitments and, if they do, whether ESG improves performance.

One of our Partners, Lucie Mills shared her insights with the publication, emphasising how a proactive approach to integrating ESG into investment processes is needed.

She said: “Keep it simple. Don’t overload your portfolio companies with complex ESG reporting requirements. Focus on a few key metrics that are relevant to their business. Link ESG to business outcomes. Don’t wait for regulations to force you to focus on ESG. Start now and get ahead of the curve.”

For more of Lucie’s thoughts on the topic, read the full article here.