Evan Greenfield is Managing Director and Head of ESG for the Private Equity division at BCI. He recently published a paper with Stanford called "ESG Value Creation in Private Equity: From Rhetoric to Returns" that explains exactly how sustainability strategies produce financial returns in portfolio companies. In this episode, Evan joins Jenn to explain why ESG is good for value creation, and why speaking the language of finance matters more than ESG jargon.
Define ESG Clearly and Drop the Jargon
Evan surveyed 20 heads of ESG about their definition of ESG. He got 20 different answers. It's nearly impossible to integrate something when nobody agrees on what it actually is. Investment professionals already understand business and finance, so speak their language, don’t use ESG terminology. Expecting them to learn ESG jargon is an uphill battle. Translate sustainability initiatives into financial terms and demonstrate economic opportunities.
Customise Sustainability Strategies to Each Company
There's no one-size-fits-all approach to ESG integration. What works for one company in one industry won't work for another. For an insurance brokerage, instead of measuring their emissions, BCI helped them use their energy sector knowledge to win business in renewable energy and develop new insurance products for carbon credits. For a logistics company, it was changing driver compensation structures. The benefit of customisation is that it becomes a genuine competitive advantage rather than a compliance exercise.
Build Trust Before Brainstorming Solutions
After acquisition, build credibility and trust before diving into sustainability initiatives. BCI avoids any conversation about politics or ideology. The focus is simple: we're here to enhance returns. Once that relationship exists, sustainability opportunities emerge from understanding the business, not from enforcing ESG strategies.