Buliding an Environmentally Conscious PE Firm

The “tremendous results” that large private equity firms are beginning to see from their green portfolio programs are available to the middle-market as well, argues Tom Murray, Managing Director of Corporate Partnerships at the Environmental Defense Fund (EDF).

In an interview with Privcap, Murray discusses the growing awareness among private equity executives that economic as well as environmental benefits can be had as a result of establishing sustainability programs similar to those created by The Carlyle Group, KKR and Oak Hill Capital Partners in partnership with the EDF. Murray discusses the results of a new study about ESG in private equity, the concern that middle-market GPs have that green-portfolio programs will not be effective at their end of the market, the $1.8 million in costs and 440,000 pounds of waste that were reduced at a Carlyle portfolio company recently, and a new EDF program called Climate Corps that places MBA students in private equity firms to establish sustainability programs.

(Access a study done in conjunction between EDF and Malk Sustainability Partners about ESG in Private Equity here).