Responsible investing

Responsible investment is rapidly becoming a mainstream concern for the investment sector. Dramatic growth in the number of investors who have adopted the Principles for Responsible Investment (PRI) is only the latest indication that the sector is paying serious attention to the integration of environmental, social and governance (ESG) factors in investments and portfolios. Credible responsible investment policies and decision making will protect and enhance portfolio returns, especially over the longer term.

Incorporating ESG principles results in more accurate pricings and forecasts as well as guiding long term thinking, as industries and countries adapt to a changing climate.

Maximising returns and meeting shareholder demands for more responsible funds

Key questions to consider:

has your organisation translated its responsible investing policy and commitments into concrete action?
is responsible investment a core component of your organisation's risk management approach?
does your organisation undertake ESG due diligence on an investment or portfolio company?
can your organisation articulate how its responsible investment policy has added value to a portfolio or how it plans to realise this value at exit?

We can help with:

development of policies, frameworks and processes to monitor and manage ESG performance across your investment portfolio
measurement and analysis of the climate risk in existing portfolios or potential investments using global data sets
analysis of portfolio ESG performance against established benchmarks
ESG reporting aligned to external reporting standards and frameworks such as GRI or the Sustainable Development Goals.

Taking advantage of the benefits of green financing options

Key questions to consider:

is your organisation planning a major investment which could be funded by a green or sustainability bond?
is your organisation aware of which assets or investments could provide opportunities to access funding through sustainability or green bonds?
could your organisation's green investment or bond benefit from being verified or assured by a third party?
does your organisation have the right data and reporting in place to engage with investors on the performance of its green investment?

We can help with:

development of sustainability bonds that align with corporate and sustainability strategies
framework development to ensure the underlying investments meet sustainability bond standards
connection to investors interested in sustainable investment and assistance with developing a compelling narrative for this audience
navigation of credit rating agencies’ requirements
measurement and reporting of environmental and social impacts and investment performance of an investment
third party verification of the governance and controls for fund allocation and related reporting.

Ensuring your due diligence approach provides a holistic view of the target’s long term sustainability and performance

Key questions to consider:

is your organisation considering environmental, social and governance factors when analysing potential investments or conducting vendor due diligence?
does your due diligence approach provide a holistic view of the long term sustainability or environmental and social impact of the target business?
how does your organisation understand whether the ESG policies and actions of a target business are adequate and addressing the appropriate risks?
has your organisation considered the increase in valuation accuracy that results from quality ESG due diligence?

We can help with:

assessment of ESG risks and opportunities that could impact deal value
identify possible mitigants or actions to take advantage of ESG opportunities present in a target business
benchmarking a target’s ESG performance against an existing portfolio or wider market
analysis of historic and current regulatory compliance of a target.

Contact us

Annabell Chartres

Partner, Sustainability, Climate & Nature Leader, PwC New Zealand

Tel: +64 21 799 927

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Responsible investing

Maximising returns and meeting shareholder demands for more responsible funds

Taking advantage of the benefits of green financing options

Ensuring your due diligence approach provides a holistic view of the target’s long term sustainability and performance

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Contact us