Private Equity Company of the Year

Description

This award is for private equity firms which are trailblazers in embedding social and environmental impacts into their investment decisions and in the way they manage their portfolios.  For example, eligible private equity firms might have invested significantly in renewable energy, in women-backed businesses, in low-income countries, or in nature-based solutions.  Or they might have developed processes for supporting their investee companies on their sustainability journey by, foe example, ensuring that their representative on the Board is an ESG champion.  Or they might have developed a framework for assessing and managing the real-world impact of their investee companies.

Judges do not expect perfection in all aspects of a private equity firm’s activities: they know that embedding sustainability into all investment decisions is a challenging process! But they will be looking for examples of outstanding performance as a leader in sustainable finance and impact, and of clear integration of sustainability and impact goals with the private equity firm’s core business.  

They will expect to see measurable outcomes and impacts, as well as clear commitments to future progress. Specifically, they will be looking for real leadership in the selection and engagement of portfolio companies, and in monitoring and reporting, as reflected in the criteria below.

Criteria

Selection and engagement (40%): How the private equity firm selects and engages with companies in its portfolio on environmental and social issues such as:

  • carbon emissions reductions (Scope 1, 2 & 3)

  • commitments to science-based targets in line with net zero goals and the energy transition

  • zero-waste and zero-pollution progress and commitments

  • avoidance of deforestation and promotion of biodiversity restoration

  • diversity and inclusion

  • labour and human rights in the workplace and supply chain

  • impact on local communities

  • high standards of corporate governance.

Monitoring and reporting (40%): How the private equity firm monitors and reports on the performance of its portfolio in these areas, which may include targets. The judges will be looking in particular for information on how the firm is engaging with its clients through Board seats, design of reporting requirements and any incentives for impact performance.

Integration (20%): How the private equity firm has demonstrably integrated all its work on impact and high ESG standards with its overall approach to investment. To what extent is it demonstrating a commitment to improved social and environmental outcomes through all aspects of its investment strategy?

Any confidential data will be treated as such and only shared with the judging panel, all of whom will have signed NDAs.