Solutions

Climate risk and private equity firms

Assessing and addressing the impact of climate change

The scientific evidence is clear. Companies already feel the effects of climate change through increased risks and costs, shifting consumer demands and direct business disruption. As such, it is important for private equity (PE) firms to understand the effects of climate change, which although a risk, is also a value creation opportunity for companies.

Private equity’s role across the financial landscape continues to expand. PE deal activity has more than doubled in the past ten years. Meanwhile, the number of companies that were listed on the US stock exchange has fallen by 50 per cent over the last two decades.

As PE activity increases, so too does investor and regulator interest in how PE firms assess the value of their portfolio companies beyond purely economic indicators.

Transparency into how fund managers integrate climate related risks and manage them accordingly will be increasingly important to PE stakeholders across the board in the coming years.

A robust forward-looking approach is needed to incentivise stakeholders to shift their strategy to a low-carbon economy.

Cross-cutting themes affecting most industries

Why Deloitte?

  • We deliver 30+ ESG and Climate due diligence checks per year giving us a solid understanding of the PE challenges across all industries.
    We developed ClimWise, our tool to scale and accelerate the integration of climate risk into Private Equity.
  • We have world-class climate advisory experts, such as Eric Dugelay, a partner from Deloitte France and also a member of the Task Force on Climate related Financial Disclosures (TCFD).
  • We have a global network of over 300,000 professionals in 150 countries and over 950 consultants specialising in sustainable development all over the world.

Deloitte’s Sustainability team – creating long-term value for our clients

Our team has over 20 years of deep technical expertise helping private equity companies navigate the regulatory requirements and strategic decisions needed to create value for their investments and portfolios.

Depending on your specific needs, investment portfolio and sustainability goals, we have an extensive suite of services ranging from Audit & Assurance to Financial Advisory to Tax & Legal, providing you with a holistic and progressive approach to achieve your business objectives.

Do not hesitate to contact the team below to discuss how we can help you and your company assess and address the impact of climate change on your company, investments and portfolio.

Contacts

Marcel Meyer

Marcel Meyer

Partner, Deloitte Switzerland Sustainability Lead

Marcel leads Deloitte Switzerland’s Sustainability services, Investment Management practice and is a member of the Board of Directors. He has 20 years of experience auditing and advising domestic and ... More