Private equity ESG program support

Challenge

SLR is providing ESG support to a Private Equity (PE) firm focused on the North American energy sector.

Solution

Thanks to SLR’s deep knowledge of the industry and our client’s assets, SLR was requested to conduct the PE firm’s initial ESG review, after which we assisted with the development of the firm’s ESG Policy and Program. More recently, SLR was asked to assess the ESG risk profile, strategy, and program of each portfolio company. SLR has reviewed approximately half of the portfolio companies and will complete this effort in 2021. The PE firm intends to repeat the assessments beginning in 2022 due to their value.

Most of the firm’s portfolio companies already have some form of ESG program and SLR has assisted by identifying further improvement opportunities.

Environmental opportunities relate to water conservation, greenhouse gas emissions reduction and land quality management. Notable social opportunities relate to community engagement, work practices, and indigenous people.

We identified governance improvements both within portfolio companies and the PE firm. Each portfolio company has implemented improvements to address the assessment findings.

Impact

Portfolio company and PE firm managers indicate the SLR work to date has reduced business risks, improved operational performance, enhanced the company reputation, and improved worker relations.