【波士顿咨询BCG】2024私募股权的可持续发展报告_36页_9mb

Summary of Sustainability in Private Equity, 2024

Core Content

This report provides an in-depth analysis of sustainability progress in the private equity (PE) industry in 2024, highlighting the evolving role of PE firms in driving sustainability improvements across their portfolio companies. It leverages data from the ESG Data Convergence Initiative (EDCI), which has expanded to include over 450 major PE general partners (GPs) and limited partners (LPs), with more than 150,000 data points collected from approximately 6,200 PE-backed companies. The report outlines how sustainability is becoming a key lever for value creation and how PE firms are responding to increasing investor expectations.

Main Points

1. Sustainability as a Value Creation Tool

• Renewable Energy Adoption: Private companies are increasingly adopting renewable energy, outperforming public companies in some areas. The median renewable energy usage in private companies rose to 30% in 2023, up from 28% in 2022. Public companies also saw an increase, but the gap is narrowing.
• Job Creation: Private companies continue to outpace public ones in job creation, though the rate has slowed across the board due to macroeconomic pressures and automation trends. The slowdown was more pronounced in the US compared to Europe and Asia.
• Diversity Metrics: Private companies have made progress in gender diversity at the C-suite level, with 77% having at least one woman in leadership, compared to 64% in public markets. However, board diversity remains a challenge, with only 61% of private companies having at least one woman on their board, compared to 89% of public companies.
• Employee Engagement: The use of employee surveys has increased significantly, with 74% of EDCI member companies using them in 2023, up from 63% in 2021. Higher survey completion rates are associated with lower employee turnover, which can improve productivity and reduce costs.

2. The Impact of Hold Periods

• Sustainability Improvements Over Time: Companies held by PE firms tend to improve on sustainability metrics over their hold period. For example, renewable energy usage increases from 6% at acquisition to 14% by the end of the ownership period.
• Work-Related Injuries: Injury rates have decreased over time, with a 22% drop in median injury rates from 2.2 to 1.8 per 1,000 FTEs. High-risk sectors like Infrastructure and Transportation have seen more progress than others.
• Diversity: Companies held for more than two years show greater gender diversity in both board and C-suite positions compared to those held for shorter periods.

3. LP Expectations and Engagement

• Investor Prioritization: 85% of LPs expect to increase their focus on sustainability over the next three years. Almost 70% believe companies that manage sustainability should receive a valuation premium.
• Data Utilization: LPs collect sustainability data for internal analysis and to engage constructively with GPs. They are more interested in GPs with a clear intention to improve sustainability outcomes than in those with poor current performance.
• ESG Assessment: Some LPs, like PGGM Investments, use ESG assessments during due diligence to evaluate a GP's ability to manage sustainability risks and opportunities.

Key Insights

• PE's Strategic Role: PE firms, with their long-term focus and influence over portfolio companies, are well-positioned to drive sustainability improvements, especially in areas linked to long-term value creation.
• Growing Importance of Sustainability: Sustainability is becoming a competitive advantage for PE firms and their portfolio companies, offering benefits such as reduced operating costs, lower risks, and new revenue opportunities.
• Need for Continued Efforts: While progress has been made, there is still room for improvement, particularly in board diversity and the adoption of renewable energy in certain regions.

Recommendations

• For GPs: Continue to prioritize sustainability in their investment strategies and leverage data to drive measurable improvements across their portfolios.
• For LPs: Use sustainability data to engage with GPs and ensure that they are aligned with long-term ESG goals. Consider investing in GPs that demonstrate a clear plan for sustainability improvements.
• For the Industry: Expand the use of standardized sustainability metrics and improve transparency to support better decision-making and performance tracking.

Conclusion

The 2024 report reinforces the idea that sustainability is not just a regulatory or reputational concern for PE firms, but a strategic opportunity that can enhance value creation and long-term competitiveness. As the industry continues to evolve, the role of sustainability will become even more critical, and PE firms that actively engage with it are likely to gain a significant advantage.