For clients who need assistance evolving their ESG management programs, Bridge House Advisors facilitates a process that starts with understanding the firm’s history, culture, investment thesis and LP base and concludes with a practical and fit-for-purpose ESG management program that includes policy, an integrated approach to pre-investment ESG due diligence, metrics and monitoring at the portfolio company level, and a strategy for reporting to LPs and other external stakeholders.
Collaborated with an upper middle market GP who had little more than a high-level ESG policy in place and helped the firm benchmark and evolve their ESG policy, developed sector-specific ESG guidance documents for use by deal teams earlier in the investment process, engaged with existing portfolio companies and established ESG metrics, and helped the firm prepare their first annual ESG report.
Pre-Investment ESG Due Diligence
Bridge House Advisors provides a tailored approach for pre-investment due diligence designed to highlight the material risks, as well as value creation opportunities, associated with the environmental, social, and governance (ESG) considerations relevant to a business’s operations. Our deep knowledge of ESG and extensive experience conducting ESG due diligence across industries enables our Clients to make informed, responsible investment decisions and effectively manage ESG risk.
Established a hybrid pre-investment ESG Due Diligence and post-investment Carbon Footprint scope for a global PE Client seeking to minimize ESG risk, capitalize on ESG opportunity, and understand their go forward exposure to future carbon and climate risk.
Identified potential vehicle fleet cost savings of $1.7M annually for a business through our pre-investment review of Energy Efficiency. The business was operating a fleet of over 350 vehicles without fuel or efficiency considerations.
ESG Metrics, Monitoring & Reporting
Bridge House works with global private equity clients and portfolio companies on developing customized ESG metrics as well as establishing a process for monitoring and reporting results year over year. We assist clients with maintaining their ESG programs through direct engagement with companies on ESG metrics and monitoring. Our reporting services include developing annual ESG Reports for employees and investors, and preparing client responses to the UN Principles for Responsible Investment (UN PRI) and other 3rd party frameworks.
Partnered with a multinational private equity firm to assess ESG material topics for its portfolio, set ESG KPIs with new companies, discuss performance with existing companies, and prepare results in an annual report for Limited Partners.
Led the quarterly ESG monitoring of portfolio companies for a middle-market private equity firm. This support included developing a prioritized list of ESG initiatives and metrics for companies to implement and be evaluated against moving forward. We also prepared the firm’s annual reporting submittal to the UN PRI on which they scored an A grade.
Impact Opportunity Assessment
Using a proprietary methodology, Bridge House evaluates the broader environmental and/or social impacts of a company’s business such that the company’s impact can be quantified in the form of an Impact Model and reported to both internal and external stakeholders.
Evaluated the broader environmental and societal impacts of a national tire recycling business and deployed a hosted IT platform to track the company’s impacts over time.
Assessed the societal impacts of a women’s reproductive healthcare provider to quantify the improved healthcare outcomes and cost savings compared to the regional baseline of care in the company’s markets.
Impact Tracking Dashboards
To assist our clients with the visualization and ongoing tracking of their broader environmental and/or social impact (or their ESG metrics and KPIs), Bridge House Advisors leverages Amazon Web Services (AWS) and Tableau software to design, build and host custom dashboards that enable real-time access to their current impact and ESG performance from their computers, laptops or mobile devices.
Bridge House Advisors hosts this solution for a national tire recycling business which enables them to track the inbound volume of tires being recycled by state, the safety benefits associated with the use and deployment of selected end products as well as the GHG emissions displaced per calendar year.
Corporate Sustainability Strategy & Reporting
Bridge House provides sustainability / corporate social responsibility (CSR) strategy development and reporting services for global clients across a variety of sectors. This includes conducting materiality assessments, engaging stakeholders, developing strategic platforms / pillars for a sustainability program, recommending initiatives, establishing performance metrics, and setting long-term goals. Specific to reporting, our services include developing comprehensive sustainability / CSR reports using the Global Reporting Initiative (GRI) and Sustainability Accounting Standards Board (SASB) Standards. We also support the preparation of formal responses to various 3rd party sustainability disclosures.
Developed a sustainability strategy framework and roadmap for a global chemical company through a sustainability asset / initiatives audit, conducting a materiality assessment, engaging internal and external stakeholders, and identifying long-term goals.
Supported a global management consulting firm in preparing its annual sustainability / CSR report in accordance with the GRI Standards and as a participant of the United Nations Global Compact (UNGC).
Climate Risk & Carbon Footprinting
Bridge House Advisors helps our clients assess climate-related risks and quantify their carbon footprints across their investment portfolios. By conducting carbon footprint assessments, Bridge House Advisors helps clients 1) visualize which portfolio companies are the largest emitters of carbon and 2) respond to LP requests related to carbon emissions. Similarly, using reputable sources and studies, Bridge House Advisors can identify organizations with a heightened transitional climate risk. By failing to keep up with policy changes, energy and economic transition, technology development, etc., fund managers may see lower returns if organizations are unable to shift towards low-carbon economy operations. Further, in-line with resources such as the Task Force on Climate-related Disclosures (TCFD), Bridge House Advisors helps clients plan for current and various potential future states through physical climate-risk scenario modeling.
Bridge House Advisors is in the process of developing carbon footprints for all portfolio companies (12 total) in a GP’s current fund. Following completion, Bridge House Advisors will identify potential methods to reduce the funds overall carbon footprint.
Bridge House recently completed a life-cycle carbon footprint analysis for a US-based recycling company, which focused on the GHG emissions avoided by the use or application of its recycled products compared to the GHG emissions associated with the manufacture of similar products made from virgin materials.
Energy Management & Resource Efficiency
Bridge House Advisors works with Private Equity clients to help them implement and manage programmatic energy/utility demand programs across their portfolio companies. This work entails collecting and analyzing energy performance data, sizing the opportunity in financial terms, prioritizing companies and individual facilities that offer the best opportunities for fast savings, conducting onsite opportunity assessments, and providing oversight for the implementation of energy efficiency projects.
Bridge House worked with a large cap Private Equity firm to help them implement a Utility Demand Reduction program. Analysis of eight (8) portfolio companies in the fund, prioritized by a number of factors revealed the following upside: a conservative annual cost savings potential of $23M and a near-term (i.e., quick start) cost savings opportunities at six (6) of the companies worth $6.7M.
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