PRIVATE EQUITY PROFITS FROM DISASTER at the Expense of Workers, Communities, and Climate

The report argues that private equity firms have consolidated the disaster restoration market, leading to a decline in workplace standards and community protections. It details systemic wage theft, numerous OSHA safety violations—particularly regarding asbestos—and the paradox of firms profiting from disaster cleanup while owning high-emitting fossil fuel assets. The document calls for legislative action, such as the Climate Resilience Workforce Act, and stricter labor standards for private equity owners.

• Private equity firms are increasingly consolidating the disaster restoration sector, with 72 companies acquired between January 2020 and June 2023. The majority of these are 'add-on' acquisitions where existing PE-owned brands buy smaller businesses, with ATI Restoration, Blackmon Mooring, and BluSky Restoration among the fastest-growing.
• Some private equity firms engage in a contradictory financial model by investing in fossil fuel assets that contribute to climate disasters while simultaneously profiting from the resulting disaster restoration work. Blackstone is highlighted as a primary example, owning the General James Gavin Power Plant in Ohio, which was linked to significant public health impacts and EPA orders regarding toxic coal ash disposal.
• Workers in PE-owned restoration companies frequently face wage theft, often exacerbated by the use of complex subcontractor layers and threats against undocumented immigrants. Specific cases include Cotton Holdings, which paid a $50,000 settlement for minimum wage and overtime violations, and a Servpro franchisee in Florida that paid over $200,000 in back wages.
• Between January 2015 and January 2022, OSHA identified 194 violations at PE-owned restoration companies and their franchises. The most frequent violations relate to asbestos and respiratory protection, including a case where a Servpro franchise's improper work led to asbestos contamination at a Massachusetts elementary school.
• The report documents severe health and safety failures during the Covid-19 pandemic, including reports of workers at a Servpro site in Michigan being housed four to a room and two to a bed without masks or testing, leading to severe medical issues for some.
• Private equity-owned firms have been linked to community harms beyond the workplace, including a fatal bus crash in Louisiana involving workers intended for a Servpro franchise and a $100,000 settlement paid by a Servpro franchise for price gouging residents in North Carolina after Hurricane Florence.

APA

Creeks, A. (2023). PRIVATE EQUITY PROFITS FROM DISASTER at the Expense of Workers, Communities, and Climate. Private Equity Stakeholder Project. https://pestakeholder.org/wp-content/uploads/2023/09/PESP_DisasterRecoveryReport2023-1.pdf

Chicago

Creeks, Azani. PRIVATE EQUITY PROFITS FROM DISASTER at the Expense of Workers, Communities, and Climate. Private Equity Stakeholder Project, 2023. https://pestakeholder.org/wp-content/uploads/2023/09/PESP_DisasterRecoveryReport2023-1.pdf.

Wikipedia

{{cite report |last1=Creeks |first1=Azani |title=PRIVATE EQUITY PROFITS FROM DISASTER at the Expense of Workers, Communities, and Climate |publisher=Private Equity Stakeholder Project |date=August 2023 |url=https://pestakeholder.org/wp-content/uploads/2023/09/PESP_DisasterRecoveryReport2023-1.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{creeks2023private, author = {Creeks, Azani}, title = {{PRIVATE EQUITY PROFITS FROM DISASTER at the Expense of Workers, Communities, and Climate}}, institution = {Private Equity Stakeholder Project}, year = {2023}, month = aug, url = {https://pestakeholder.org/wp-content/uploads/2023/09/PESP_DisasterRecoveryReport2023-1.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }