ESG assessment of private equity investment

Challenge

In 2017 our client, a leading Private Equity firm, invested in a concessionaire of infrastructure equipment. This business leads the market for self-serve vended luggage carts, electronic lockers, and commercial strollers, and provides mobility and baggage storage services.

Solution

Our client has set ESG expectations for all its portfolio companies and, after all investments, it obtains an independent ESG assessment of its portfolio companies. Having worked together on numerous assessments, the clients was confident SLR’s ESG assessment would be enlightening and comprehensive.

Although initially reluctant, the company's management became convinced of the assessment’s value due to the leading-edge knowledge and practical experience of the SLR team. SLR confirmed the business’ long-standing commitment to materials conservation dating back to its prototype luggage cart, but it also identified needed ESG improvements and opportunities. The business appreciated that SLR identified practical and workable solutions aligned with its strategy and specific business challenges. For example, SLR identified value adding opportunities to improve environmental performance, employee working conditions, and management of social issues in the supply chain.

Impact

The business subsequently developed its own ESG Policy and program that both meet investor expectations and is now a point of pride for the workforce. The business continues to improve ESG performance, most recently reducing energy use, transportation, and waste.