In this episode of EY NextWave Private Equity podcast, the speakers explore how operating executives can effectively communicate the value prop of ESG at the portco level.
Maha Eltobgy, Chief Sustainability Officer and Managing Director at Brightstar Capital Partners, joins host Winna Brown to discuss the approach that Brightstar is taking to implement ESG on the ground.
ESG is top of mind for PE executives right now. According to the 2022 EY Global Private Equity Survey, ESG is one of the top four strategic priorities listed by PE firms. Forty-two percent of the largest fund managers seriously consider ESG in their decision-making process, while a further 39% say they consider ESG issues seriously in certain risk areas. ESG is a top priority for firms, but effectively implementing ESG strategy and principles across the portfolio remains challenging.
Five ways PE can navigate the implementation of ESG strategy and principles across the portfolio are:
- Win the trust of management teams
- Start with employee retention and engagement
- Meet the portfolio company where they are in their journey
- Demonstrate how ESG values translate to business value
- Translate ESG principles into tangible, actionable initiatives
For your convenience, full text transcript of this podcast is also available. Read the transcript.
Maha EltobgyChief Sustainability Officer and Managing Director, Brightstar Capital Partners
Duration 24m 00s
In this seriesSeries overview
How Brightstar balances value and values when implementing ESG
How geopolitical power shifts will affect investment opportunities
EY EMEIA Leader, Geostrategic Business Group
What ESG means to KKR
What’s in store for SPACs
How today’s economic rebalancing is impacting PE
EY-Parthenon Chief Economist, Strategy and Transactions, Ernst & Young LLP
PE Pulse: Five takeaways from 1Q 2022
What PE is outsourcing to create value
How PE can use the ‘See, Solve, Scale’ process to screen investments