There is wide recognition in the financial community that an effective analysis of ESG risks and opportunities is a fundamental part of the assessment of a company’s value. Addressing ESG risks and realising opportunities for ESG improvements during a fund’s investment period are important levers for fund managers to add value to their portfolio companies.
To help fund managers identify, manage and improve ESG risks and standards, CDC has recently launched a new, updated and fully web-enabled ‘Toolkit for Fund Managers’. It has been specifically designed for private equity (PE) fund managers investing in emerging markets, although many of the tools, standards, processes and practices are used internationally by PE funds. The Toolkit is also widely used as a resource by limited partners, consultants, legal firms and others
Objectives
The toolkit aims to:
- explore the business case for assessing and managing ESG risks and opportunities arising from investments;
- provide tools for integrating ESG analysis into investment decisions and investment management;
- help determine when specialist expertise is required;
- consider how to report to boards, investors and the public; and
- provide guidance on how to apply international ESG standards, notably those used by development finance institutions (DFIs).
