Leveraging ESG data leads to enhanced outcomes for private equity investors
Considering Environmental, Social and Governance factors (ESG) as part of the investment process continues to move up the priority list for private equity investors. Today, general partners (GPs), limited partners (LPs), and portfolio companies all regularly apply an ESG lens to investment and asset management decisions. In fact, ESG integration at each stage of the investment lifecycle is becoming critical to raising capital, generating value, identifying risks, and commanding higher multiples.
A new paper from KPMG, ESG metrics that matter, draws on KPMG’s extensive ESG advisory and reporting experience to share insights and advice to help private equity stakeholders tackle a major industry challenge—making sense of the all-encompassing ESG data demands—and put a leading-edge approach to ESG metrics into practice. The paper complements a new industry guide, ESG metrics in private equity, produced by the Private Equity Taskforce of the Sustainable Markets Initiative (SMI)—a global forum that aims to accelerate the world's transition to a sustainable future.
We have identified common baseline considerations and recommendations we believe are essential starting points for the PE industry to identify material ESG metrics to influence more business outcomes.
KPMG helps PE firms develop and adopt an approach that streamlines multiple LP and regulatory reporting requirements, enabling value beyond compliance. Our suite of solutions and tools leverage technology, analytics, and strategy to focus ESG reporting activities on metrics and information that matters the most throughout the different stages of the investment life cycle.
We can assist PE firms to streamline their ESG reporting and quality data collection by: