Sancroft launches ESG toolkit

Sancroft, an investment advisory firm counselling PE firms, has launched a free-to-use interactive assessment tool designed to assist GPs with benchmarking their ESG integration and to help them meet demands from regulators, investors and other stakeholders.

To assist PE firms with prioritisation and operational changes, the toolkit encompasses four levels of maturity, classified through diagnostic questions.

Additionally, it should contain an outline of best practices for GPs that have successfully integrated ESG and a glossary to assist with future navigation of the ESG landscape.

“ESG integration remains one of the most critical tasks for every private equity investor,” said Judy Kuszewski, CEO of Sancroft. “This is not simply because of the non-negotiable requirement to comply with the demands of regulators and stakeholders. It is because ESG factors are critical to managing investment risk, optimising returns (both financial and non-financial), generating value and attracting investment in the longer term.”

“The only way firms will realise these benefits is by understanding the current level of maturity of their ESG integration and how it must evolve to stay ahead of competitors, regulators and other stakeholders,” Kuszewski added. “Sancroft’s investor ESG toolkit helps firms identify the specific actions that will have most impact and bring most value in their ESG journey.”

In 2023, PE firms will face ESG scrutiny on five fronts:

• Some 54%  of all PRI signatories face mandatory reporting this year
• All PE firms and advisers in the EU and those marketing under the AIFMD must report under the SFDR
• The UK’s SDR is set to be finalised mid-2023
• The TCFD will be extended to all financial firms from 2024
• Mitigating against the anticipated rise of greenwashing litigation.