How to drive portfolio EBITDA via ESG with General Atlantic's Global Head, Cornelia Gomez

The Private Equity Podcast, by Raw Selection

Welcome to The Private Equity Podcast! In this episode we dive into the world of ESG with Cornelia Gomez, Global Head of ESG and Sustainability at General Atlantic. Cornelia brings a wealth of experience, sharing how to seamlessly integrate ESG into Private Equity, enhance business growth, and navigate sustainability challenges. Discover actionable ESG strategies that drive value and prepare companies for a sustainable future.
Breakdown:

[00:00] Introduction to Cornelia Gomez's background and role at General Atlantic.

[00:33] The conversation focuses on the unique challenges of implementing ESG strategies in growth equity firms compared to later-stage companies, emphasizing the importance of tailored approaches for hyper-growth companies.

[01:30] Cornelia shares her personal and professional background, underscoring her dedication to leveraging business as a force for addressing global challenges such as modern slavery, rising inequalities, and climate change.

[02:25] Insights into Cornelia's career journey, from working on supply chain sustainability in Asia to leading ESG initiatives in the Private Equity sector.

[03:55] Discussion on common mistakes made by Private Equity firms and portfolio companies in ESG, particularly the neglect of governance aspects, and strategies to enhance governance practices.

[05:22] Cornelia addresses the need for comprehensive governance in ESG initiatives, including board governance quality and oversight on sustainability risks and opportunities.

[06:42] Highlighting the gap between executive teams and boards in terms of ESG awareness and training, suggesting a need for more direct communication and education on ESG issues at the board level.

[09:52] The conversation shifts to strategies for effectively communicating ESG principles within companies, emphasizing the importance of aligning ESG discussions with executive interests and operational realities.

[11:33] Cornelia discusses her learning curve at General Atlantic, the importance of scalable ESG initiatives, and the focus on data-driven approaches to engage portfolio companies in meaningful ESG actions.

[18:45] Insights into how General Atlantic integrates ESG considerations throughout the investment lifecycle, from due diligence to exit strategies.

[21:22] The strategy of using ESG playbooks and targeted engagement based on company clusters to address specific ESG challenges and opportunities within the portfolio.

[24:08] Cornelia shares examples of successful ESG engagements and the importance of coordinated efforts among PE firms, portfolio companies, and co-investors to achieve sustainability goals.

[30:45] Discussion on the concept of "gold standard" in ESG implementation, highlighting the need for actionable plans, robust governance, and continuous monitoring of ESG initiatives.

[38:02] Cornelia offers personal recommendations for podcasts, music, and activities that inspire her, along with the value she finds in mentoring and interacting with the next generation of leaders.

[41:54] The episode concludes with advice on reaching out to Cornelia for further discussion on ESG and other topics.
You can connect with Cornelia Gomez on LinkedIn by visiting her LinkedIn Page.
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