Here are the reasons why private equity firms of all sizes are taking environmental, social and governance issues seriously
and thus must buy or finance companies that will not break those commitments. The effect spills down to middle-market private equity and private credit organizations, inclusive of their current and prospective portfolio companies.” Indeed, the effect spills down to organizations of all sizes.
Viewed through a different lens, companies that manage ESG initiatives represent reduced risk in the eyes of limited partners. Companies with strong ESG-related policies might find it easier to manage challenges and seize opportunities related to climate change, evolving regulations, diversity, equity and inclusion or other sustainability-related issues.
“Portfolio companies that proactively address their stakeholder concerns receive benefits beyond potential immediate increases in sales and cost reductions, tapping into deeper and more resilient network effects that lead to higher valuations,” says Kerwin. To put it another way, well-executed“Buyers don’t invest in a company’s business model alone—they invest in the strength of the management team, their ability to plan for the future and their ability to innovate.
“Employees tend to prefer working for companies that do good things for their communities, so strong ESG credibility can contribute to better talent attraction and retention,” says Kerwin. For private equity investors, that workforce edge represents an ability to create—and protect—value.
México Últimas Noticias, México Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
Amazon is proof of a major weakness in ESG ratingsOPINION: Amazon, bigger than Walmart in terms of sales, reports emissions from shipping that are only one-seventh the size of Walmart’s. Here’s a catch: The figure doesn’t reflect emissions generated by Amazon’s third-party sellers.
Leer más »
ServiceNow BrandVoice: To Move Ahead, Look BackThree lessons from 2021 that can inspire you to dream big in 2022.
Leer más »
Dyson supplier ATA to work with human rights commissionDyson's Malaysian supplier ATA IMS Bhd will work with the national human rights institution to improve its environmental, labour and social and governance (ESG) practices, the parts maker said on Monday.
Leer más »
Arizona couple left 11-year-old child alone for weeks after Thanksgiving, authorities sayMelissa Green, 34, and Bobby Jo Green, 40, of Elfrida, Arizona, each have been charged with three counts of child neglect.
Leer más »
Amazon is proof of a major weakness in ESG ratingsOPINION: Amazon, bigger than Walmart in terms of sales, reports emissions from shipping that are only one-seventh the size of Walmart’s. Here’s a catch: The figure doesn’t reflect emissions generated by Amazon’s third-party sellers.
Leer más »
The Apple Watch Series 7 is on sale for $349 right now | EngadgetGet the Apple Watch Series 7 on sale in red or green while supplies last..
Leer más »