Identification and mitigation of ESG risks for multiple companies in the BFSI sector
Client
Multiple BFSI sector companies in growth stage
Problem
Identification & mitigation of ESG risks in BFSI sector companies at the time of investment appraisal by PE investors and recommendations of an ESG Action Plan
Solution
- Sub-sectors: PE funds, commercial banks, fintech, insurance, NBFC, microfinance, etc.
- Interactions with promoters & business heads of potential investee companies to understand the business model and its interaction with ESG components & screening
- Focus on ESG risks such as client protection, data privacy & information security, collection practices, HR practices
- Preparation of E&S Action Plan with priority & timeline
Impact
- Evaluate screening criteria: preventing investments in environmentally & socially excluded sectors
- Identified governance risks on time, which resulted in investors abstaining from the deal
- Improving investee practices on HR, emergency preparedness & response in offices, client protection