ESG Management

Malk Partners has advised many of the world’s most respected investment firms, helping them to achieve high-value results from strong ESG management practices.

Members of the Malk team are experts in transaction advisory, operational engagement, and investor relationships, all of which make us successful in serving private market investors. Collaborating with clients, our services are tailored to provide effective coverage of:

Firm Level Commitments Due Diligence Monitoring & Reporting

Firm Level Commitments

Effective ESG programs are built on firms’ awareness and management capacity. It is critical to establish internal consistency and pursue ESG initiatives that serve present drivers and are relevant for investment professionals. Establishing or refining an ESG management framework will help firms to better define goals and effectively communicate ESG plans both internally and to investors.

Malk works with clients to develop a customized ESG management approach based on firm commitments. Malk consultants are experienced in the successful firm-wide integration of ESG practices, helping clients codify ESG commitments into actionable policies and educating investment professionals on ESG topics. By helping our clients build strong ESG programs and communication platforms, we arm professionals with the tools they need to derive greater value from their investments and to satisfy investors over the life of the fund.

Due Diligence

Due diligence provides enhanced visibility into ESG risk and opportunity, offering private market investors a more holistic view of an investment. ESG due diligence looks at the totality of risk associated with an investment by identifying non-traditional risk impacts (consumer good will, reputational scrutiny, operational costs, license to operate, etc.) that fall outside the scope of traditional risk advisors focused on compliance and track record.

Malk structures the mechanics of its ESG risk evaluation to compliment investors' assessment of all other financial and operational factors. In a due diligence engagement, Malk consultants qualify the capacity of the target company's management to identify and mitigate ESG risks on a forward-looking basis and will recommend mitigation steps for onboarding and ownership. Our formalized ESG review process enhances traditional due diligence and helps investment professionals address ESG issues before they occur by taking a predictive risk posture aligned to the operational goals and function of a company's management systems.

Malk works with clients to calibrate each review to the ESG issue areas most material to the transaction, including:

Data Privacy and Security
Labor and Environmental Practices in the Supply Chain
Ethics and Compliance
Social and Labor Conditions
Diversity and Equal Employment Opportunity
Anti-Bribery and Corruption
Worker Health and Safety
Environmental Management
Product and Food Safety
Sustainable Branding
Climate Change

Monitoring & Reporting

ESG diligence assessments establish an ESG performance baseline and serve as a low friction on-ramp for risk mitigation initiatives and ongoing monitoring of material issue. With a pre-signing ESG diligence review, firms can begin ownership with a clear path for addressing and mitigating key ESG issues or can leverage findings from ESG due diligence as a valuable resource for equity sponsors and/or management teams.

Post-close, Malk consultants not only support clients in the ongoing monitoring of ESG issues identified in diligence but also in the reassessment of ESG risk and opportunity based on major operational changes or shifting market dynamics over the ownership period. On behalf of clients, Malk will conduct iterative check-ins with management teams to monitor progress on ESG risk mitigation recommendations and issue an updated risk assessment and new recommendations for improvement, as warranted. As part of Malk's monitoring engagements, we also help clients satisfy investors' ongoing interest in ESG management through strategic advisory on proactive communication and formal ESG reporting.

ESG Management

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