New Private Markets: NYU Stern pilots sustainability-linked value creation tool for LPs

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NYU Stern CSB's tool designed for Limited Partners was featured in New Private Markets as an essential tool to evaluate wither GPs are approaching sustainability with a value creation lens and focus on financial outcomes. 

 

Sustainability-linked value creation is defined in the guidance document as an approach that 'quantifies outcomes - such as efficiencies from better resource use or productivity gains from improvements in employee welfare - in financial terms'. It contrasts with a compliance-led, or even a risk-led approach to sustainability, by focusing on quantifiable outcomes....With the help of the LP guidance, 'they [LPs] can start to better understand the underlying value drivers, like the financial benefits of decarbonisation, of circularity, etc, and start to put in place ways to evaluate that with their portfolio companies

Read the full article at New Private Markets here.