Many medium and large companies are looking to private equity for capital expansion into new markets or products because banks are giving out fewer loans.
New York, New York (PRWEB) November 01, 2012
Strategic partnerships are shaking up mid-market financing by looking at opportunity and risk management beyond the bottom line.
Multiple stakeholders now use “Environmental, Social and Corporate Governance” (ESG) standards to gauge how a corporation is responding to -- and reporting on -- metrics that go beyond profits and losses.
Many medium and large companies are looking to private equity for capital expansion into new markets or products because banks are giving out fewer loans. By having ESG practices in place, a company can show potential stakeholders that it is managing future risk, costs and opportunities.
ESG, once the domain of socially conscious investors and mission focused non-profits, is now becoming popular for corporations and investors as a market-driven mechanism that reviews a company’s response to complex risks.
For investors, especially large public institutional investors, such metrics provide a baseline, indicating that funds and companies in which they invest are doing a level of due-diligence needed in the new economy.
For mid-market companies and funds, ESG is a source of competitive advantage. Having policies to manage – and in some cases profit from – the looming problem of commodity risks can set a firm above the competition.
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