HOW ESG CAN DRIVE YOUR PORTFOLIO VALUE

“Companies focusing on ESG issues have achieved reduced costs, improved worker productivity, mitigated risk potential, and created revenue-generating opportunities. These are just some of the ways in which ESG can enhance corporate profits and long-term sustainability” – S&P Global Ratings, 2019 [1]

Turnkey’s Unique Approach 

Turnkey is working with a number of leading PE houses on establishing and managing a structured 4-step ESG strategy to apply to all investee companies. This is typically ‘hardwired’ at deal close, through to exit.

STEP 1: ENGAGE

    • Implement a sustainability strategy
    • Engage employees and stakeholders

STEP 2: MEASURE

    • Baseline current capabilities – define materiality and impact
    • Set targets with verifiable data points and measurable KPIs
    • Manage Regulatory/ LP Reporting

STEP 3: ACT

    • Execute identified process improvement opportunities leading to cost savings
    • Expand to encompass more metrics and drive deeper into the business

STEP 4: COMMUNICATE

    • Articulate your sustainability targets and achievements, backed up with verified data
    • Share with stakeholders and publicly disclose

Benefits of a robust ESG strategy

Investee companies will see a significant benefit from embracing an ESG strategy:

  • Operations Optimisation –  reduce operational costs from energy, water, waste, staff turnover reduction, etc.
  • Ability to win more business – differentiate against competitors
  • Employee Engagement – attracting and retaining talent (recruitment cost reduction)
  • Strengthen Reputation – across customers, suppliers and stakeholders
  • Valuation Upside – enhanced valuation at exit*

Software to enable the ESG journey

Critical to implementing the ESG strategy for PEs and their investee companies is the choice of ESG data/analytical/risk software that can support through each of the four phases explained above.

Please feel free to contact Turnkey team for more information on how our suite of ESG software solutions supports both the PE and its investee companies through this journey at enquire@turnkey.tech.

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Environmental, Social & Governance (ESG) Tracking & Metrics – A Better Way Forward

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Real Life Environmental, Social & Governance (ESG) Insights from a Private Equity Client

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