Responsible investment for private equity

Integration of ESG into PE investment process

Responsible investment (RI) is increasingly becoming an important focus within the investment industry. Companies from Europe and the United States are leading the way in incorporating environmental, social, and governance (ESG) factors into their investment and mergers and acquisitions decisions.

In China, a surge of interest in RI driven by government and social pressures are fuelling the need for investors to embed ESG factors in their investment processes. The increasing pressure of regulatory changes is driving a greater need for transparency and disclosure. In response, private equity (PE) funds would need to address their stakeholders’ increasing expectations in regards to reporting requirements.

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Responsible Investment Toolkit and Analytics

How we can support you

We provide a full range of RI services to our private equity clients and their investee companies. Leveraging on our proprietary ESG toolkit developed specifically for PE funds in Asia, we support the investment and operations teams in identifying and managing ESG-related risks and opportunities throughout the investment lifecycle.

ESG framework development

  • ESG strategy and policy
  • ESG standards and KPIs
  • ESG KPIs tracking and monitoring
  • ESG reporting
  • ESG trainings

 

Investment decision and due diligence

  • Evaluate the impact of sustainability megatrends on markets and industries
  • Advise on risk appetite, investment policies and procedures for managing company impacts
  • ESG due diligence
  • Deal ESG risk screening guidelines and toolkits

Investment ownership

  • Review of the whole portfolio to identify focal points for action
  • Reviews and benchmarking of portfolio company operating practices and supply chains
  • Guidance on internal and external responsible investment reporting
  • Guidance on achieving efficient regulatory compliance

 

Investment exit

  • Helping you tell a compelling story about the values added by the PE house through ESG initiatives during the hold period
  • IPO and public company readiness assessment and action plans in relation to ESG issues and standards
  • Valuing ESG initiatives

 

Our insights and guidance on responsible investment

Are you ESG ready?
How private equity can stay ahead of escalating ESG demands in Mainland China and Hong Kong

Over the past 12 months, we have seen a significant increase in the number of Chinese signatories to the United Nations-supported Principles of Responsible Investment (PRI) in Mainland China and Hong Kong. This is a strong indicator of the increasing attention the industry is paying to responsible investment and the integration of ESG factors into investment management. Explore the ESG trends in Mainland China and Hong Kong, and more importantly how private equity can stay ahead of escalating ESG demands.

Download the report

Contact us

Qing Ni

Qing Ni

Chinese Mainland Asset and Wealth Management Industry Leader, PwC China

Tel: +[86] (10) 6533 2599

Loretta Ng

Loretta Ng

Partner, PwC Hong Kong

Tel: +[852] 2289 2503

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