When Environmental Defense Fund (EDF) first teamed up with leaders in the private equity industry four years ago, we were building on the learnings from over 20 years of partnerships with leading public companies. However, as BSR’s recent blog points out, there are now new lessons learned from private equity firms that all companies can apply to their sustainability efforts.
Check out the post below that points to our work with KKR and Carlyle and other trends in the private equity industry.
Generating and Protecting Value Through Sustainability: Five Lessons From Private Equity
Even though credible sustainability initiatives serve as an engine of value creation, there are still critics who claim such efforts are more about public relations. Yet several prominent private equity firms—known for their rigorous focus on producing returns for investors—are emerging as sustainability leaders, particularly when it comes to integrating sustainability into investment decisions and management.
So how do leading private equity firms apply sustainability to generate and protect value, and what can other companies learn from that?
Through BSR’s work with private equity firms, we have identified five practices that highlight the potential for lagging firms to catch up, for leading firms to take bolder steps, and for companies in all sectors to realize the value of sustainability.
These practices are especially important in light of questions that have been raised recently during the U.S. presidential race about the role and responsibility of private equity firms in the economy. It is timely now to identify how private equity can integrate sustainability and stakeholder considerations to enhance value, and how the industry can engage with other sectors to create a more sustainable global economy.
Continue reading onBSR Insight.