Sustainability Driven Value
My private market investors believe that sustainability can protect value at stake, cut costs, drive growth, increase productivity, and improve cost of capital. However, this value is rarely quantified in financial terms, which hinders buy-in from deal teams, CFOs, and other stakeholders as they develop and take action on the portfolio company's value creation strategy.
Whether delivering a directional scan of value creation potential across a portfolio or delving into the specifics of a particular company in your portfolio, identifying and quantifying the value of sustainability can form a critical component of how both investment and sustainability leaders make the case for sustainability.
What Re:Co offers
Value Scans
Conduct outside-in analysis with minimal data inputs, sizing the potential proftability uplift available under each value lever, prioritised by relevance, covering either one company or a portfolio.
Value Quantification
Develop bottom-up financial models for priority sustainability value creation initiatives developed with data inputs collected from the company, sizing impact and return on investment where feasible, with proposed KPIs attached to each.
Transformation
Articulate the full sustainability strategy behind the quantified initiatives, developed in close collaboration with portfolio companies, with visibility into the specifics of implementation.
Outcomes
Sustainability value quantified in terms of profitability uplift, by lever, over the hold period
Clarity on which sustainability initiatives should be prioritised based on company objectives, value potential, ease of implementation, and other considerations
A basis for sustainability conversations with management that is grounded in financial terms