ESG transformation, value creation and navigating macroeconomic and geopolitical headwinds

Abris’ management team speaks with Real Deals about the firm’s ESG transformation, value creation approach and how to navigate macroeconomic and geopolitical headwinds

Real Deals: The CEE market has changed much during the past year – how has Abris adapted?

Pawel Gierynski: What is different about the recent period is not so much the challenges presented by the geopolitical and economic situation, but the unprecedented level of uncertainty around what will happen next.

If you run businesses well , a crisis should be an opportunity to prove your resilience and gain market share. With this in mind, at Abris we believe that we should not seek to avoid shocks, but rather to absorb them and consider how to turn them into an opportunity. This requires agility, a transformation mindset and a clear methodology for reacting to disruption.

We help all our portfolio companies to build their ability to absorb shocks. Each case is different but there is a common approach. We insist that all companies have a business continuity plan worthy of the name. We always use leverage conservatively. We focus on true just-in-case supply chains. And we always hire the best people we possibly can. We also review and revise strategies at our portfolio companies on an ongoing basis, rather than waiting for annual or even quarterly board meetings.

Real Deals: Abris has recently started describing itself as an ESG transformation specialist – what does that mean?

Monika Nachyla: Last year, we asked ourselves how we could better explain to investors what we do. One conclusion was to be more vocal about a fundamental element of our value-creation methodology: integrating ESG so that our portfolio companies undergo a true transformation in standards. As a result, when we exit, each company is a very different player, and a leader in their field in terms of corporate governance, carbon neutrality, risk-based management, digitalisation and sometimes even reaching for B Corp certification.

Moreover, we can demonstrate how this process is conducted through deep analysis of data in our proprietary ESG tracking software, which also shows how ESG leadership translates into additional financial value at exit. So, we decided to make this methodology our label. ESG transformation is our specialisation and we believe our approach – our ESG team, tools and methodology – is unique in the private equity market.

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