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Hanne Thornam, EY Norway Head of Climate Change and Sustainability Services, joins Winna Brown to share why PE is in a unique position to lead our transition to a low-carbon, circular economy.
Contact Hanne: hanne.thornam@no.ey.com
As private equity (PE) firms focus on ESG, they must also pivot to a long-term, forward-thinking mindset.
For an industry accustomed to using historical data to project the next four to five years, this is no simple task; however, it is an existential one. Climate change will mean our world looks very different in a decade regardless of the action we take (or don’t take), and PE firms are uniquely equipped to lead this mission, should they choose to accept it.
ESG topics have both financial and commercial relevance, and PE must define and track KPIs that are specific to each portfolio company. It is no longer optional to engage in the ESG conversation, as a lack of awareness is an inherent business risk.
Two overarching climate scenarios are possible, both of which require comprehensive adaptation and imagination:
Six ways PE firms can shift their mindset to increase their climate competence and confidence: