TPG Capital, L.P.
At a Glance
Industry
Financial Services and Insurance
Project Types
Supply Chain, Sustainability and Energy Management Strategy
Year
2020
Location
San Francisco, CA
Summary
Danny Miller advised a selection of TPG Capital portfolio companies on implementing and scaling value creating sustainability initiatives, and co-designed TPG’s updated internal ESG framework and portfolio company annual assessment.
Goals
Through a climate risk analysis, the ESG team at TPG identified high risk portfolio companies. Engagement for these companies is meant to create measurable value specific to each company while also mitigating their individual risks. The ESG team is also enhancing internal frameworks and processes to be integrated across business units within the firm. The objectives of the fellowship were to engage directly with high risk portfolio companies to identify value creating and risk mitigating initiatives, and to assist the ESG team in updating internal ESG capabilities.
Solutions
Miller accomplished the objectives in Portfolio Engagement and Internal ESG Strategy through four projects:
Portfolio Engagement
- To enhance resilience of smallholder farmers in the supply chain of a dairy processing company, Miller researched the crop insurance market to determine the optimal crop insurance schemes that could reach scale for their supply chain, and developed implementation scenarios to operationalize the scheme.
- To advance the development of a waste reduction and recycling strategy of an apparel distribution company, Miller created a detailed tiered approach for designing a waste reduction and recycling strategy, including specific resources for understanding waste streams, data management, and short- and long-term goal setting. He also created a waste audit vendor analysis to help initiate the first step of understanding their waste streams
Internal ESG Strategy
- To enhance ESG capabilities and tracking on portfolio companies, Miller researched industry leading sources to create a list of material metrics for an updated ESG framework. Building on the framework, he created an analysis tool to screen for material metrics for individual companies.
- To enrich the breadth and quality of ESG data collected on portfolio companies, Miller co-designed and updated the ESG Performance Assessment that is distributed annually.
Impact
If brought to scale, Miller’s implementation strategy for the dairy processing company could lead to crop insurance coverage for ten thousand smallholder farmers in Sub-Saharan Africa. His recommendations to the apparel distribution company have the potential to decrease their operational costs, decrease the level of waste they are producing, and result in a LEED or USGBC certification. His contribution to the internal ESG strategy work has helped to create an infrastructure for ESG and sustainability to be further engrained in TPG’s processes.