ESG Program Development
Private Equity Company • Remote
Solution Overview
Client:
Private equity (PE) company
Business Challenge:
- A PE firm with numerous portfolio companies needed to understand the impact of its operations across its holdings.
Solution:
- ARTEMIS® environmental, social, and governance (ESG) allows the PE firm to track energy usage across sources, as well as health and safety data, corporate governance data, and more.
Results:
- As an integrated solution, ARTEMIS® ESG provides a comprehensive picture of the PE firm’s greenhouse gas (GHG) footprint across its portfolio companies, and provides insights that allow the organization to address gaps across its ESG program.
Challenge
The market for environmental risk management and public disclosures has changed dramatically in the last three decades. Companies must now manage their social license to operate i.e., companies need to not only manage their environmental and social risk but must also report their data for public accountability. Environmental, social, and governance, otherwise known as “ESG” is a set of criteria used to assess a company’s operational performance as it relates to its financial prospects. This measure is used in enhancing corporate transparency; thereby enabling stakeholders to identify companies with like values. According to the National Association of Securities Dealers Automated Quotations (NASDAQ), “ESG information is not just text but data, focusing on the performance that is measurable, manageable, actionable, and reportable.” Apex Companies' new ARTEMIS® ESG module is a solution that tackles data management head-on.
Solution
ARTEMIS® stands for Apex Real Time Environmental Management Information System. It is Apex’s solution for capturing and managing critical environmental and ESG data, that leverages technology to measure, manage, and report on ESG risks across business lines and/or portfolio companies. This cloud-based platform allows companies to access ESG data quickly, proactively manage energy consumption, and facilitates easy reporting.
There is often a lacuna between those who develop corporate ESG strategy and those who manage day‑to‑day operational level data; ARTEMIS® ESG leverages technology to bridge this gap. Its calendaring feature creates a schedule based on regulatory requirements and provides displays by activity type to ensure the right team is notified about upcoming compliance issues and reporting needs. It then aggregates those records to be reported up into corporate level ESG risk and management through its extensive capability to export to Excel, Word, and Adobe PDF.
At the operational level, team members can upload information using their mobile device, collect data in the field, and relay it immediately through secure web portals. With 24/7 access to quality data, clients can make quick and informed decisions about their projects, which saves time and money. ARTEMIS® started as a water management tool but has grown in reporting capabilities and is now being used to manage ESG reporting and performance for a diverse range of markets and industries, including private equity firms across multiple portfolio companies.
Unlike other ESG management platforms that emphasize the “E,” ARTEMIS® is also being used by clients to focus on social and corporate governance themes. Apex has leveraged its expertise in the health and safety and workforce management and ESG reporting frameworks to manage material social risks like injury and illness incidents, diversity, equity, and inclusion (DEI), hiring and retention, and employee training. Specifics of what ARTEMIS® tracks can be designed to meet the material needs of a particular portfolio company or PE firm. Apex understands that a successful ESG program ultimately rests on good corporate governance practices. This insight has been crucial in the development of ARTEMIS®. The tool allows clients across different industries and profiles to focus on tracking specific governance policies with the help of ESG subject matter experts.
ARTEMIS® ESG is currently being utilized by a private equity firm (Company A) whose portfolio includes engineering, manufacturing, service, and retail firms. Company A identified a gap as they were developing a more robust and intentional ESG program for onboarding newly acquired portfolio companies. Growing market demand, the need for transparency around ethical ESG reporting, and long-term value creation were key driers for Company A’s ESG program development. They found that the options available in the market to track this data have often been split between platforms that focus on “E” versus those that focus on “S” and “G.” Apex saw the opportunity to customize its existing software and help bridge the gap between operational data and corporate ESG strategy.
Results
ARTEMIS® has been a key tool for benchmarking not only GHG and DEI data, but also for tracking changes in operating procedures and corporate governance policies. By housing ESG data and policies in ARTEMIS®, Company A has made its onboarding more efficient, benefiting its internal teams as well as the individual portfolio companies. Company A can view all their portfolio companies’ ESG data, facility lists, social metric trending analysis, governance policies etc. in real time, in one place. and in one consistent format, while each portfolio company can view their own firm’s data and track performance over time and themes.
As a next step towards providing our clients with the tools to understand ESG-related risks and opportunities for their business, Apex Companies, LLC is proud to launch ARTEMIS® ESG. As we continue to build out the capabilities of ARTEMIS® ESG we will look to expand into new markets and industries, taking feedback from our clients to continuously improve our service and solution offerings. This innovative software, combined with Apex’s 30+ years of experience in the ESG sector, provides our clients with one tool that is rooted in efficiency to allow them to think strategically, execute safely, and grow responsibly.