Group meets in a conference room
Case Study

Private equity firm packages existing initiatives to build ESG strategy

Private equity firm serving middle-market businesses builds an ESG strategy by evaluating existing initiatives and prioritizing topics relevant to investors.
Group meets in a conference room
Case Study

Private equity firm packages existing initiatives to build ESG strategy

Private equity firm serving middle-market businesses builds an ESG strategy by evaluating existing initiatives and prioritizing topics relevant to investors.

Client background

A private equity firm focuses on investing in lower middle-market businesses, agnostic to location or industry. The firm’s portfolio holdings include companies in the manufacturing and distribution, construction, infrastructure, communication and food production industries. Prioritizing people and community are what fuels the private equity firm to build trusted client relationships and ultimately grow their business.

The business challenge

The conversation and interest around Environmental, Social and Governance (ESG) has grown significantly in recent years, especially within the private equity space. Consequently, potential investors started to ask the private equity firm about their ESG strategy. Because an ESG foundation had not yet been developed, the firm reached out to Baker Tilly for help.

The ESG journey begins

Though the private equity firm had ESG initiatives established or in process, it was necessary to strategically package and share this information with potential investors. To do so, the Baker Tilly team took the following approach:

  1. Identified the private equity firm’s key stakeholders (i.e., the parties most interested or impacted by ESG issues)
  2. Leveraged existing an ESG framework to collaboratively identify the ESG elements or topics most relevant (i.e., material) to the private equity firm and key stakeholders
  3. Developed an ESG assessment workbook to aggregate relevant ESG elements for analysis and to develop an understanding of existing ESG-related policies, procedures and practices
  4. Drafted an ESG policy document to be shared on the firm’s website to communicate ESG practices, priorities and future initiatives

Building a sustainable future

By taking inventory of ESG topics relevant to key stakeholders, assessing existing ESG practices within the firm and creating an ESG policy for internal and external communications, the private equity firm is armed with additional resources and responses needed for investor requests.

In a few short months, the private equity firm had developed an ESG strategy to help prioritize and execute future initiatives. This further exemplifies their commitment to focusing on the bigger picture by continuing the momentum to build a sustainable future.

Christopher E. Jeffrey
Partner
Sheet metal stamping
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