Corecentra for Private Equity
A comprehensive, cloud-based platform for maximizing ESG & Impact across ALL phases of the deal lifecycle - from sourcing and screening, to due diligence, to value creation.
Your Investors Are Now Serious About ESG
Limited Partners and Institutional Investors are now demanding visibility into the consolidated ESG performance of your portfolio. Importantly, though, it's not just about the Annual ESG Report that you may be cobbling together today (see graphic).
The investors want to know that your due diligence process is thoroughly vetting these companies from an ESG perspective. Once the vetted companies are acquired, they want to know that your firm is proactively driving continuous improvement in ESG impact as well as ongoing reduction in ESG risk.
The SEC Is Now Serious About ESG
The war on "greenwashing" has begun. The SEC has created an ESG Enforcement Division that is not only focused on disclosures from public companies, but is also ensuring that private equity funds classified and promoted as ESG-focused are, in fact, ESG-focused.
At the end of May, 2022, the SEC announced its first enforcement action against a prominent US financial institution as a result of false claims of ESG diligence for certain investment funds:
The Market Is Serious About ESG
Debates will continue to rage in both political and business arenas regarding the direct link between ESG performance and company performance. However, more studies are showing that whether the correlation is direct or indirect, companies with lower ESG risk profiles outperform the market both short and long term.
Companies that are good at managing ESG are often equally effective at managing all parts of their businesses. Further, strong commitment to ESG principles are an increasing factor in acquiring and retaining customers, as well as, acquiring and retaining top talent - both of which are critical to long term growth and profitability.
Standardize, Simplify, Prescribe, Repeat
Corecentra's mission is to simplify and automate (where practical) the collection of ESG and sustainability data - not just once per year, but continuously.
Then, through an integrated ESG analytics engine, give the private equity firm the ability to gain meaningful insight at all stages of the deal lifecycle - not just once per year, but continuously.
Our ultimate goal is to enable the private equity firm to proactively engage with the portfolio, define prescriptive ESG cross-portfolio milestones, and then track progress in a centralized and standard way. And, you guessed it, not just once per year, but continuously.
We refer to this strategy as On Demand Impact Transparencytm.