Environmental, Social and Governance: A Critical Lever for Private Equity Value Creation

Environmental, Social and Governance: A Critical Lever for Private Equity Value Creation

Over the past 20 years, private equity investors have developed a broad set of tools to draw maximum value out of portfolio companies. The focus has shifted from financial engineering to driving topline growth, followed by operational transformation and, more recently, digitalization. Today, as the world’s attention turns to global issues around climate change, diversity and inclusion, and corporate governance, a new tool in that toolkit has emerged.