Integrating Sustainability and ESG in Private Equity

A Playbook for Generating Long-Term Value from Sustainable Practices
1. Auflage 2025
ISBN: 978-1-041-03837-5
Verlag: Taylor & Francis Ltd

Buch, Englisch, 202 Seiten, Format (B × H): 156 mm x 234 mm

Reihe: Routledge Research in Sustainability and Business

This book reveals how sustainability and ESG principles can be implemented towards a competitive advantage through compelling real-world case studies and proven frameworks. Following Alex Morgan's evolution from sceptical analyst to sustainability advocate, this book demonstrates how systematic ESG integration delivers superior financial returns while creating stakeholder value.

The book provides comprehensive guidance for implementing sustainable practices throughout the private equity lifecycle, from enhanced due diligence that uncovers hidden risks and opportunities, to operational excellence frameworks that drive performance improvements, to exit strategies that capture ESG premiums. Through various portfolio companies case studies, readers discover practical methodologies for value creation across environmental, social, and governance dimensions. Essential frameworks include materiality assessment, stakeholder engagement, regulatory compliance, and measurement systems that transform sustainability from administrative burden to strategic intelligence.

This essential guide serves students, private equity professionals, institutional investors, portfolio company executives, and sustainability practitioners seeking to implement ESG strategies that bring about true value creation. With detailed implementation playbooks, sector-specific approaches, and proven methodologies, this book positions readers to build resilient, high-performing businesses that benefit all stakeholders.

Zielgruppe

Professional Reference and Undergraduate Advanced

Autoren/Hrsg.

Odaro, Esohe Denise

Beslik, Sasja

Fachgebiete

• Wirtschaftswissenschaften Volkswirtschaftslehre Internationale Wirtschaft Entwicklungsökonomie & Emerging Markets
• Geowissenschaften Umweltwissenschaften Nachhaltigkeit
• Wirtschaftswissenschaften Betriebswirtschaft Unternehmensfinanzen Betriebliches Rechnungswesen
• Wirtschaftswissenschaften Betriebswirtschaft Unternehmensorganisation, Corporate Responsibility Unternehmensethik

Inhaltsverzeichnis

- Foreword

- Preface

PART I: THE LAY OF THE LAND

Chapter 1: Private Equity Uncovered — From Wall Street to the World

- 1.1 The Private Equity Difference

- 1.2 Historical Evolution and Market Transformation

Chapter 2: The Sustainability Revolution — How We Got Here

- 2.1 From Environmental Protection to ESG Framework

- 2.2 Key Milestones That Changed the Approach

- 2.3 Influential Organizations and Their Impact

- 2.4 The Value Creation Shift

Chapter 3: The Money Case — Why the Most Profitable Deals Were Also the Most Sustainable

- 3.1 The Value Creation Framework

- 3.2 Case Study: Nordic Components Value Creation Success

- 3.3 Case Study: Peninsula Services Employee Engagement Transformation

- 3.4 Case Study: Alpine Foods - Turning Accidental Sustainability into Strategic Advantage

- 3.5 The Evidence: Numbers Don't Lie

PART II: WHAT WORKS ON THE GROUND

Chapter 4: The Deal Cycle — Adding Sustainability to Every Step

- 4.1 Due Diligence That Actually Discovers Value

- 4.2 Active Ownership That Drives Change

- 4.3 Governance Mechanisms That Work

- 4.4 The Full Cycle Success

Chapter 5: Due Diligence That Delivers — Finding Gold and Avoiding Landmines

- 5.1 Integrating ESG into Risk Management

- 5.2 Case Study: The Chemical Company Discovery

- 5.3 Stakeholder Analysis Framework

- 5.4 Quantitative Tools That Actually Work

- 5.5 Solving Real-World Implementation Challenges

Chapter 6: The First 100 Days — Setting Portfolio Companies Up for Success

- 6.1 Building the Foundation

- 6.2 Influence Strategies That Deliver Results

- 6.3 Change Management That Works

- 6.4 Measuring Engagement Effectiveness

Chapter 7: Measuring What Matters — Practical Metrics That Drive Performance

- 7.1 Building Effective Reporting Frameworks

- 7.2 Data Systems That Work in the Real World

- 7.3 Evaluation Methods Worth Your Time

- 7.4 Strategic Integration That Creates Value

- 7.5 Leadership and Culture as Critical Enablers

Chapter 8: The Exit Advantage — How Sustainability Boosts Your Multiple

- 8.1 The Exit Process Through a Sustainability Lens

- 8.2 Value Enhancement Mechanisms

- 8.3 Practical Timeline for Maximum Impact

- 8.4 High-Impact Implementation Approaches

- 8.5 The Art of Sustainability Storytelling

- 8.6 Case Studies: Premium Exits

PART III: NAVIGATING THE TOUGH STUFF

Chapter 9: Regulation Without Tears — Making Compliance Work for You

- 9.1 The Evolving Regulatory Landscape

- 9.2 Essential Frameworks Simplified

- 9.3 The ISSB Evolution: A Case Study

- 9.4 Regional Variations That Matter to Investors

- 9.5 The EU CSRD's Practical Impact

- 9.6 Mastering Regulatory Complexity

Chapter 10: Winning Hearts and Minds — The Human Side of Sustainable Investing

- 10.1 Stakeholder Mapping That Works

- 10.2 Understanding Stakeholder Expectations

- 10.3 Engagement Methods That Deliver Results

- 10.4 The Business Benefits of Strong Engagement

- 10.5 Success Stories Worth Replicating

- 10.6 Overcoming Common Challenges

- 10.7 Engagement Frameworks That Scale

Chapter 11: The AI Opportunity — How Smart Technology Makes Sustainability Simpler

- 11.1 The Data Revolution in Sustainable Investing

- 11.2 Common Data Challenges and Smart Solutions

- 11.3 AI Applications That Deliver Real Value

- 11.4 Data Collection Breakthroughs

- 11.5 Analysis That Drives Better Decisions

- 11.6 Due Diligence Enhancement Through Technology

- 11.7 Implementation Strategies for Different Contexts

- 11.8 Ethical Implementation Guardrails

- 11.9 Case Studies: AI in Action

- 11.10 Future Directions Worth Watching

PART IV: PUTTING IT ALL TOGETHER

Chapter 12: The Sustainable PE Playbook — Lessons From the Field

- 12.1 Assessment and Baseline Establishment

- 12.2 Implementation Roadmap Development

- 12.3 Organisational Architecture for Success

- 12.4 Investment Process Integration

- 12.5 Technology and Systems Requirements

- 12.6 Performance Measurement Framework

- 12.7 Change Management for Sustainability Transformation

- 12.8 Practical Implementation Toolkit

Conclusion: The Future of Sustainable Private Equity

Glossary

Appendices

Über Autor(innen)

Esohe Denise Odaro is a sustainability executive at a leading pre-eminent European private equity firm, overseeing the firm's sustainability strategy for assets exceeding €26 billion. She serves on the ESG Working Group of Invest Europe and the Private Equity Task Force under the Sustainable Markets Initiative. Previously, she served as Global Head of Investor Relations and Sustainable Finance at the World Bank Group's IFC, spearheading development of innovative sustainable finance products as part of a $17 billion annual funding program. She holds an MBA in Finance from Cornell University and a MSt in Sustainability Leadership from the University of Cambridge.

Sasja Beslik is a Swedish financial expert promoting sustainability worldwide. He is currently working in Japan as Chief Investment Strategy Officer for SDG Impact Japan. He has held senior roles at ABN Amro, Nordea (as CEO of Nordea Investment Funds Sweden and Head of Responsible Investments), PFA Danish commercial Pension Company, and J. Safra Sarasin. Awarded a medal from His Majesty the King of Sweden for outstanding environmental contribution (2016) and recognized as a Young Global Leader at the World Economic Forum (2011). Sasja is author of several books and weekly newsletter “ESG on Sunday”