How Brightstar balances value and values when implementing ESG

NextWave Private Equity

Maha Eltobgy, Chief Sustainability Officer and Managing Director at Brightstar Capital Partners, joins Winna Brown to explore how operating executives can effectively communicate the value prop of ESG at the portco level.

ESG is top of mind for PE executives right now. According to the 2022 EY Global Private Equity survey, ESG is one of the top four strategic priorities listed by PE firms. 42% of the largest fund managers seriously consider ESG in their decision-making process, while a further 39% say they consider ESG issues seriously in certain risk areas. ESG is a top priority for firms, but effectively implementing ESG strategy and principles across the portfolio remains challenging.

Five ways PE can navigate the implementation of ESG strategy and principles across the portfolio include:

1. Win trust of management teams
2. Start with employee retention and engagement
3. Meet the portfolio company where they are in their journey
4. Demonstrate how ESG values translate to business value
5. Translate ESG principles into tangible, actionable initiatives