CLIENT E3 HOLDING AG
ESG as a cross-cutting issue for all corporate activities of E3 Holding AG
fors.earth develops and implements ESG together with E3 Holding AG (E3) as a core element of the positioning as well as along the entire investment process.
Anchoring ESG as a value driver in the private equity business
For the industrial holding E3 Holding AG, which was founded in 2021, there is no question that sustainability aspects strengthen the company's positioning and at the same time make a significant contribution to the resilience and value development of future portfolio companies. It was important to set up the company from the start in such a way that the sustainability expectations of its stakeholders – e. g. asset owners and banks – could be met.
In addition, ESG should be integrated into every aspect of the investment process: from the investment strategy and due diligence of possible target companies to active ownership, i.e. management support for portfolio companies.
Joint analysis of the ESG potential of all business activities and subsequent implementation of the product solutions
The project kicked off with a half-day workshop to provide the E3 team with an overview of the topic of sustainability in general and sustainability in the financial market. In regular digital meetings with the management board and partners of E3, the ESG needs in all facets of E3's business activities were discussed and the individual components for operational implementation were developed.
The first task was to jointly develop the desired level of ambition for E3. This served, i. a. an international competitor analysis. The level of ambition then defined the content framework for all further modules, especially
- the ESG investment strategy, i.e. the stipulations by E3, which company activities are generally excluded from an investment or which qualify in a positive sense,
- advice on joining initiatives such as the UN Global Compact and the UN Principles for Responsible Investment
- ESG due diligence, i.e. the definition of those ESG aspects of the business activities of target companies that should be systematically examined before an investment decision is made, and
- the active ownership, i.e. the long-term operational support for the portfolio companies, with the aim of tapping new ESG market potential and minimizing risks.
On this basis, fors.earth is now carrying out an ESG due diligence for all relevant target companies on behalf of E3 and then permanently supporting the portfolio companies in the context of value-development in terms of sustainability.
A robust positioning and implementation of ESG in all of E3's activities
Due to the systematic integration of ESG into all business areas, E3 Holding AG was able to position itself immediately with the establishment of an ESG strategy, which i. a. gave it access to ESG-affine investors. At the same time, processes were established that help identify essential ESG risks and opportunities in advance of investment decisions and establish sustainability as a long-term value driver in all portfolio companies.
"ESG has become an essential parameter for us in two ways: as a success factor for the performance of our portfolio, but also as a clear requirement of investors."
Olivier Weddrien, CEO of E3
“Not least by directing capital flows in the direction of more sustainable business models, which the EU is currently massively promoting, enormous market potential is opening up for companies and PE-investors. We are pleased to be able to combine these two perspectives with our new offer. "
Matthias Bönning, managing director and contact person for private equity companies
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